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Monday 6 November 2023
California Man Sentenced to 102 Months in Prison for Multimillion-Dollar Stolen Identity SchemeRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced earlier today that RUSSELL DWAYNE LEWIS, a/k/a “Clifford Ari Getz,” a/k/a “Clifford Ari Getz Cohen,” a/k/a “Ari Getz,” a/k/a “Aryeh Getz,” was sentenced by U.S. District Chief Judge Laura Taylor Swain to 102 months in prison for defrauding multiple individuals out of millions of dollars over a period of years, using several aliases and stolen identities. LEWIS previously pled guilty to two counts of wire fraud and one count of aggravated identify theft.
U.S. Attorney Damian Williams said: “Russell Dwayne Lewis orchestrated a sophisticated fraud and stolen identity scheme to engage in a pattern of serial fraud, seeking to defraud friends, associates, and a major corporation by lying about his identity, wealth, and business activities. As today’s sentence demonstrates, serial fraudsters like Lewis will be caught and brought to justice for their crimes.”
According to the charging documents and other filings and statements made in court:
Between 2016 and 2020, RUSSELL DWAYNE LEWIS, a/k/a “Clifford Ari Getz,” a/k/a “Clifford Ari Getz Cohen,” a/k/a “Ari Getz,” a/k/a “Aryeh Getz,” engaged in a series of brazen schemes to misrepresent his identity, his wealth, and his professional and personal background in order to defraud multiple individuals and at least one corporate entity. LEWIS used aliases for years, utilizing the name, birth date, and social security number of real individuals to perpetrate his schemes. LEWIS told increasingly outrageous lies to individuals around him, including a close friend of many years, an individual who turned to him for his claimed expertise in astrology, and representatives of a major company he falsely purported to intend to purchase.
LEWIS repeatedly and falsely claimed that he was a billionaire businessman in order to commit several different frauds, including by soliciting “investments” from his victims totaling millions of dollars over the course of years. As part of his fraudulent investment schemes, he defrauded and attempted to defraud friends, associates, and representatives of a major corporation. In particular, LEWIS stole more than $3 million from one victim, more than half a million dollars from another, and fraudulently attempted to acquire a corporate entity in bankruptcy proceedings for $290 million.
This case resulted in LEWIS’s third felony conviction for fraud and theft offenses.
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In addition to the prison term, LEWIS, 53, of Los Angeles, California, was sentenced to three years of supervised release and ordered to pay restitution in the amount of $3,788,143.58 and to forfeit the same amount of ill-gotten gains.
Mr. Williams praised the outstanding work of the Federal Bureau of Investigation and thanked the Beverly Hills Police Department for its exceptional investigative assistance.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorney Alex Rossmiller is in charge of the prosecution.
Appellate Division notches court wins for Southern District of Georgia U.S. Attorney’s OfficeRead the Press Release
SAVANNAH, GA: This year, the Appellate Division of the Southern District of Georgia U.S. Attorney’s Office continued to successfully defend the United States’ efforts to curb violent crime, to prosecute those who exploit children, and to protect American taxpayers, U.S. Attorney Jill E. Steinberg announced.
“The Southern District’s attorneys and staff consistently demonstrate exceptional skill and preparation in the cases they handle in court,” said U.S. Attorney Steinberg. “Prevailing on appeal is a resounding affirmation of the hard work of our Appellate Division in shepherding these cases through the complex appeals process.”
The Southern District of Georgia represents the interests of the United States in criminal cases in 43 Georgia counties and litigates civil cases in federal court. Highlights of those cases before the U.S. Court of Appeals for the 11th Circuit include:
- United States v. Graham: Traditionally, grand juries indict defendants by meeting in one location, where they hear witnesses in person and review other evidence. During COVID-19, social-distancing requirements made that practice nearly impossible. The Southern District of Georgia adopted a unique, temporary approach: 10 or fewer grand jurors convened in each of three federal courthouses, with the three groups linked to each other remotely by secure video-teleconference. The district kept the wheels of justice rolling, continuing to fully investigate and indict cases during that time.
James L. Graham was one of them. Graham was indicted and later convicted for participating in a conspiracy to distribute methamphetamine. On appeal, Graham argued that his conviction was invalid because his indictment under the remote procedure violated several laws, including his constitutional right to an indictment by a grand jury. The 11th Circuit affirmed Graham’s conviction, holding that the Southern District of Georgia’s innovative remote process did not change the grand jury’s basic nature, infect the jurors’ decision to indict Graham, result in any security breach, or cause any flaw in the presentation of evidence.
During COVID-19, the Coronavirus Aid, Relief, and Economic Security Act authorized the U.S. Small Business Administration to issue billions of dollars in Economic Injury Disaster Loans to eligible small businesses. Two of the Southern District’s prevailing decisions involved those cases:
- United States v. Oudomsine: The defendant lied about owning a small business to fraudulently obtain an $85,000 loan. This case received national attention because the defendant used some of that money to purchase a $57,000 Pokemon trading card. On appeal, the 11th Circuit ruled that the defendant’s 36-month prison sentence was reasonable.
- United States v. Mack: The defendant lied about owning businesses to fraudulently obtain a $150,000 loan. She used some of the funds to vacation in Miami and gave some to her boyfriend. On appeal, the 11th Circuit ruled that her 48-month prison sentence was reasonable.
The Southern District of Georgia also continues to aggressively pursue cases that involve the exploitation of children by sexual predators and abusers.
- United States v. Gunn: Michael Peyton Gunn took pornographic pictures of a child in his custody and distributed those images on the internet. He also repeatedly sexually abused and prostituted the child. At trial, he was convicted of conspiring to sex traffic a child, coercing and enticing a child to engage in sexual activity, producing child pornography, possessing child pornography, and obstructing a child sex-trafficking investigation. On appeal, Gunn alleged that the government had withheld exculpatory evidence, but the 11th Circuit confirmed that the government committed no discovery violation. The Court affirmed Gunn’s conviction and sentence.
The Appellate Division of the U.S. Attorney’s Office for the Southern District of Georgia is led by Division Chief Justin Davids, with Assistant U.S. Attorneys James Stuchell and Channell Singh, and assisted by Paralegals Taylor Workman and Leiandra Moran.
Friday 3 November 2023
Wyandotte Man Sentenced after a Federal Jury Conviction for Methamphetamine ConspiracyRead the Press Release
Yesterday, U.S. District Judge John F. Heil sentenced Adam Douglas Sherwood, 43, to 100 months in prison followed by 5 years of supervised release.
In November of 2021, a federal jury found Sherwood guilty for drug conspiracy, possession of methamphetamine with intent to distribute, and three counts of unlawful use of a communication facility.
“Distributors like Sherwood have little regard for the lives lost to addiction and violence resulting from their criminal operations,” said U.S. Attorney Clint Johnson. The U.S. Attorney’s Office will continue to work with our federal partners to investigate, disrupt, and prosecute criminal networks who pose a threat to communities in the Northern District of Oklahoma.”
Sherwood’s coconspirator, Kenneth Rosenberg, was sentenced on Oct. 25, 2021, to 60 months in federal prison, followed by 5 years of supervised release, after he pleaded guilty to possessing a firearm in furtherance of a drug trafficking crime.
The Tulsa Police Department, Bureau of Alcohol, Tobacco, Firearms and Explosives, Oklahoma Bureau of Narcotics and Dangerous Drugs, Bureau of Indian Affairs, Miami Police Department, and Drug Enforcement Administration conducted the investigation. Assistant U.S. Attorneys Justin G. Bish and Thomas E. Duncombe are prosecuting the case.
Westwood Man Sentenced to More Than 9 Years in Prison for Long-Running Surety Bond Scam that Caused More Than $5 Million in LossesRead the Press Release
LOS ANGELES – A Westwood man was sentenced today to 110 months in federal prison for defrauding victims out of more than $5 million by purporting to sell bonds for large-scale construction and other projects, and for evading the payment of more than $1.2 million in taxes.
Tommy Lester Watts, 64, a.k.a. “Michael Nesbeth,” “Michael Kent,” and “Alex Mason,” was sentenced by United States District Judge Maame Ewusi-Mensah Frimpong, who also ordered him to pay $8,995,879 in restitution.
Watts pleaded guilty on February 16 to one count of transactional money laundering and one count of tax evasion.
From September 2016 to September 2019, Watts falsely claimed to be experienced in and able to provide surety bonds and other financial guarantees for large-scale projects. Watts told victims that he would assist them in obtaining financing for their projects via his various companies, including the Sherman Oaks-based Source One Surety LLC. Watts misrepresented that any such bonds or guarantees were underwritten by well-known companies and banks, and that they were backed by assets in the millions or billions of dollars.
But Watts and his companies were not licensed to sell such bonds in California. And his claims about his experience, his clients – which purportedly included governments – his underwriting, and his supporting assets were not true. To make his scheme appear legitimate, Watts hijacked the corporate filings of other companies and created fake employees and accounts for underwriters and banks.
Watts caused victims to send his companies approximately $5,238,344, the majority of which he spent on personal items such as classic and luxury cars, rent for high-end apartments, and the purchase of luxury retail goods.
He also laundered victim payments through accounts held in the names of corporations that were not registered and used fake taxpayer identification numbers – and then used those accounts to spend victim funds as his own. He hid this income from the IRS in tax years 2017 through 2019, in which he failed to file any tax returns. Watts received a total of $4,683,430 in income that he failed to report to the IRS for those three tax years.
Watts has agreed to forfeit to the United States nearly $60,000 seized from two bank accounts he controlled, a Mercedes-Benz car and a Subaru SUV. He also has agreed to pay to the IRS a total amount of $4,226,535 in restitution, which includes at least $1,863,035 for his tax liabilities.
“It is hard to overstate how devastating this conduct was to [Watts’] victims,” prosecutors argued in a sentencing memorandum. “Some lost businesses, some their life savings, others a property that had been in their family for over 200 years. They describe divorce, eviction, and physical and mental health ramifications…an inability to trust; lost reputations and dreams.”
The FBI, Homeland Security Investigations, IRS Criminal Investigation, and the California Department of Insurance investigated this matter.
Assistant United States Attorney Kristen A. Williams of the Major Frauds Section prosecuted this case.
Utah Man Pleads Guilty to Sexual AbuseRead the Press Release
ALBUQUERQUE – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, and Raul Bujanda, Special Agent in Charge of the FBI Albuquerque Field Office, announced today that Pedro Lee Benally pled guilty to two counts of abusive sexual contact. Benally, 22, of Montezuma Creek, Utah, and an enrolled member of the Navajo Nation, will remain in custody pending sentencing, which has not been scheduled.
According to court documents, between April 1, 2022 and November 29, 2022, Benally engaged in sexual contact with Jane Doe, a child who had not attained the age of 12 years, on multiple occasions. The incidents occurred at Jane Doe’s grandmother’s house in Shiprock and afterward Benally told Jane Doe not to tell anyone about his conduct.
At sentencing, Benally may face up to 23 years in prison and must register as a sex offender upon his release.
The Farmington Resident Agency of the FBI Albuquerque Field Office investigated this case with assistance from the Navajo Nation Department of Investigation and Department of Criminal Investigations. Assistant United States Attorney Caitlin L. Dillon is prosecuting the case.
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United States Attorney’s Office Honors Native American Heritage Month and Participates in Second Annual Washington State Missing and Murdered Indigenous Women and People SummitRead the Press Release
Spokane and Yakima, Washington – Each year in November, communities across the United States celebrate National Native American Heritage Month. During this time, the Department of Justice also acknowledges the tremendous contributions of Native American communities to the United States, including those who work hard each day to support DOJ’s mission. In honoring our Tribal nations and heritage, we also remember the federal government’s trust and treaty responsibilities and obligations to strengthening Tribal sovereignty.
Earlier this week, U.S. Attorney Vanessa R. Waldref and her First Assistant, Richard Barker, joined Federal, State, and Tribal law enforcement, community leaders, other stakeholders, and victims at the Washington State Missing and Murdered Indigenous Women and People Task Force’s Second Annual Summit. During the Summit, U.S. Attorney Waldref addressed the group and provided an update on federal efforts to address the MMIWP crisis. “I want to thank the incredible leaders and community stakeholders who support the victims and families of this ongoing crisis,” U.S. Attorney Waldref stated. “As a result of your collective voices, federal, state, and Tribal governments are devoting significant resources to addressing the root causes that have led to increased numbers of missing and murdered indigenous women and people. We can honor Native American Heritage Month by recommitting to address the root causes underlying this crisis: fentanyl, domestic violence, child abuse, illegal possession and use of firearms, illegal narcotics, and human trafficking. Our communities are safer and stronger as we join together to seek justice on behalf of those affected by this tragic crisis.”
First Assistant United States Attorney Barker, participated on a panel with representatives from the Washington State Patrol, FBI, Tribal law enforcement, and the Washington Association of Sheriffs and Police Chiefs. Following the conference, First Assistant Barker reiterated the need for prosecutors and law enforcement to build trust with marginalized communities: “Federal, State, and Tribal law enforcement must not only work together to improve public safety in Tribal Nations, we must work together to earn the community’s trust. Although it will take time, we can earn community members’ trust by actively participating in community events, attending listening sessions, engaging with victims, supporting law enforcement, and honoring Tribal culture and tradition.”
More information on Native American Heritage Month is available at https://www.nativeamericanheritagemonth.gov/. Additional information regarding the Washington State Missing and Murdered Indigenous Women and People Task Force is available at https://www.atg.wa.gov/washington-state-missing-and-murdered-indigenous-women-and-people-task-force.
U.S. Attorneys Thompson and Ihlenfeld to Join with FBI and American Jewish Committee Leaders for Antisemitism TrainingRead the Press Release
CHARLESTON, W.Va. – United States Attorneys Will Thompson and William Ihlenfeld will join with leaders from the Federal Bureau of Investigation (FBI) Pittsburgh Division and the American Jewish Committee (AJC) on Monday, November 6, 2023, for training in response to rising antisemitism.
The training will by presented by AJC officials and include a message from Rabbi Jeffrey Myers of Pittsburgh’s Tree of Life Congregation about perseverance and strength following the 2018 antisemitic terrorist attack at the Pittsburgh synagogue.
U.S. Attorneys Thompson and Ihlenfeld will participate at synagogues in their respective districts that are jointly hosting this training, which is also being offered virtually.
The culture and rich diversity of the Jewish community will be discussed along with examples of antisemitism that stem from ancient and medieval antisemitic falsehoods. The training aims to enhance the understanding of the problem, identify effective responses to hate incidents, and empower people to speak out.
The joint sessions are part of the United Against Hate (UAH) Community Outreach Program, a nationwide initiative to combat unlawful acts of hate and improve hate crime reporting.
*** While media is invited to cover this joint event, participation is limited to law enforcement partners and other pre-registered stakeholders. ***
WHO: United States Attorney Will Thompson, Southern District of West Virginia
United States Attorney William Ihlenfeld, Northern District of West Virginia
Acting Assistant Special Agent in Charge Tim Swanson, FBI Pittsburgh Division
Senior Director of Policy and Political Affairs Julie Rayman, AJC
Rabbi Jeffrey Myers, Tree of Life Congregation, Pittsburgh, Pa.
WHAT: United Against Hate: Addressing Rising Antisemitism
WHEN: Monday, November 6, 2023, from 10 a.m. to 12 p.m.
WHERE: Congregation B'nai Jacob, 1599 Virginia Street East, Charleston, W.Va.
Temple Shalom, 23 Bethany Pike Highway, Wheeling, W.Va.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia.
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U.S. Attorney for the Western District of Michigan Mark Totten Announces Funding for Law Enforcement Agencies, Investments in Public SafetyRead the Press Release
GRAND RAPIDS – U.S. Attorney for the Western District of Michigan Mark Totten today announced that The Justice Department has awarded several grants as part of its Comprehensive Strategy for Reducing Violent Crime. Instituted by Attorney General Merrick B. Garland in May 2021, the strategy focuses on harnessing federal resources, intelligence, and expertise as a force-multiplier with state, local, and Tribal law enforcement.
“Fighting violent crime is one of our top priorities, especially at this moment when gunfire has become the #1 killer of our young people,” said U.S. Attorney Mark Totten. “We’re thrilled to see these grants given to multiple agencies across Michigan to help prevent and prosecute violent crime.”
Through this funding, U.S. Attorney’s Office for the Western District of Michigan is pleased to announce that the Department’s COPS Office awarded funding to the below agencies to address violent crime and maintain public safety.
2023 COPS Office Coordinated Tribal Assistance Solicitation (CTAS) Awards
Officers Funded
Amount for Hiring
Amount for Equipment & Training
Total Amount of Awards
Bay Mills Indian Community
-
-
$558,895
$558,895
Grand Traverse Band of Ottawa and Chippewa Indians
1
$545,529
$117,375
$662,904
Keweenaw Bay Indian Community
1
$395,978
$140,902
$536,880
Match-E-Be-Nash-She-Wish Band of Pottawatomi
1
$521,675
$166,836
$688,511
2023 COPS Hiring Program (CHP) Awards
Officers Funded
Award Amount
Portage, City of
8
$1,000,000
White Cloud, City of
1
$125,000
2023 COPS Office School Violence Prevention Program (SVPP) Awards
Recipient
Award Amount
Godfrey Lee Public Schools
$500,000
2023 Law Enforcement Mental Health and Wellness Act Implementation Projects
Agency
Estimated Award Amount
Michigan Department of State Police
$200,000
Complete lists of all program award recipients, including funding amounts, can be found here.
“Law enforcement officers across the country are showing up every day to protect their communities in the face of unprecedented challenges,” said Attorney General Merrick B. Garland. “These grants, which support the hiring of more than 1,700 new officers and make critical investments in school safety and crisis intervention efforts, will help provide local law enforcement agencies with the resources they need to keep their communities safe, support officers, and build public trust.”
Deputy Attorney General Lisa O. Monaco and Associate Attorney General Vanita Gupta highlighted the more than $334 million in critical grant funding to law enforcement agencies and stakeholders awarded yesterday by the Office of Community Oriented Policing Services (COPS Office).The COPS grants announced include funding to help law enforcement agencies hire over 1,730 new law enforcement officers across the country while also providing critical funding to support school safety and continue to advance community policing nationwide.
Lastly, the Deputy Attorney General and Associate Attorney General announced that this December 11-13, in Indianapolis, the Justice Department’s will bring together 1,500 local and federal partners from across the country, including representatives from the more than 50 PSP jurisdictions and from Project Safe Neighborhoods for a Violent Crime Reduction Summit, to be hosted by OJP BJA.
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Two federal inmates who coordinated Washington drug trafficking from Oklahoma prison sentenced to additional long prison termsRead the Press Release
Seattle – Two men who were federal inmates at the Federal Correctional Institute Great Plains in Hinton, Oklahoma, while organizing large methamphetamine shipments and sales, were sentenced today in U.S. District Court in Tacoma to long prison terms, announced Acting U.S. Attorney Tessa M. Gorman. Alfredo Valdovinos-Diaz, 45, previously of Vancouver, Washington, and Cosme Sanchez-Espino, 41, also previously of Vancouver, were both sentenced to 11 years in prison. Both men were indicted in 2020 and pleaded guilty to conspiracy to distribute controlled substances in July 2023.
In sentencing Valdovinos-Diaz, Chief U.S. District Judge David G. Estudillo said, drug dealing “affects families…. affects communities because of the crime associated with controlled substances, but also the effect on public services such as health care….(Drugs) take a toll on individuals who ingest a bad mixture, and maybe get a dose of fentanyl that is mixed into the methamphetamine, and they just die.”
According to records filed in the case, both men were serving lengthy prison terms for drug trafficking in the Pacific Northwest. Valdovinos-Diaz was serving an eight-year sentence for a 2015 drug trafficking conviction. In that case, Valdovinos-Diaz was responsible for directing a methamphetamine distribution network, with ties to a Mexican drug cartel, that operated out of Vancouver, Olympia, and Tacoma, and was responsible for distributing multi-kilogram quantities of heroin and methamphetamine in western Washington. Valdovinos-Diaz’ drug trafficking activity did not end with his prison term. Using a contraband cell phone, he sent and received various messages in 2019 and 2020 instructing couriers and drug suppliers about packaging large shipments of methamphetamine and how to hide it in secret compartments under the floor of a vehicle or in the vehicle bumper.
Cosme Sanchez-Espino was serving a 15-year prison sentence for a 2008 drug distribution conviction in Montana. In that case, Sanchez-Espino distributed methamphetamine from his supplier in Washington to drug distributors in Montana. Like Valdovinos-Diaz, Sanchez-Espino used contraband cell phones to direct drug trafficking to Southwest Washington. Law enforcement seized loads of 57 pounds and 25 pounds of methamphetamine connected to the men.
In asking for a sentence of eleven years for lead defendant Valdovinos-Diaz, Assistant United States Attorney Max Shiner wrote to the court, Valdovinos-Diaz’ conduct “demonstrates that he is committed to criminal activity and that his “blatant disrespect” requires additional deterrence…. (His) communications demonstrate he knew how the drugs would be packaged, transported, and stored in hidden compartments. This strongly suggests his full knowledge of the weights and quantities of the drugs involved. Second, he was an experienced leader of a drug trafficking ring in the Vancouver area who continued his drug distribution activities in that area after his conviction…”
Both defendants are citizens of Mexico who likely will be deported following their prison terms.
The case was investigated by the FBI. The case was prosecuted by Assistant United States Attorney Max Shiner.
Two Juveniles Charged as Adults for Murdering High School Student During Armed RobberyRead the Press Release
WASHINGTON – Marlan Smith, Jr., 16, and Anthony Monroe, 17, of Washington, D.C., were presented in Superior Court and charged as adults today on the charge of first degree felony murder while armed, stemming from the homicide of 17-year-old A.C., on September 11, 2023, in front of Jersey Mike’s, in the 2300 Block of Washington Place, N.E. The charges were announced by U.S. Attorney Matthew M. Graves and Acting Chief Pamela Smith, of the Metropolitan Police Department (MPD).
Monroe and Smith were arraigned before Magistrate Judge Eric Glover, today, where they entered pleas of not guilty. The defendants are accused of committing five separate armed robberies beginning at approximately 5:49 a.m., prior to the sixth armed robbery that resulted in A.C.’s death by shooting him in the head. The court heard arguments and found probable cause to believe that the defendants committed first degree felony murder while armed. The court held the defendants without bond pending a preliminary hearing scheduled for December 4, 2023, before Judge Robert Okun.
An arrest on a complaint is merely a formally charged allegation that a defendant has committed a violation of criminal laws and every defendant is presumed innocent until, and unless, proven guilty.
This case is being investigated by the Metropolitan Police Department (MPD). It is being prosecuted by Assistant U.S. Attorney Erin DeRiso.
Two Former San Francisco Department of Building Inspection Engineers Charged with Honest Services Fraud ConspiracyRead the Press Release
SAN FRANCISCO - Two former San Francisco Department of Building Inspection (DBI) construction plan engineers have been charged in federal court with participating in an honest services wire fraud conspiracy for accepting bribes in return for expediting and approving building and construction plan permits, announced Attorney for the United States Thomas A. Colthurst and Federal Bureau of Investigation (FBI) Special Agent in Charge Robert K. Tripp.
According to a criminal Information filed on November 2, 2023, Rodolfo “Rudy” Pada, 68, of Millbrae, California, began accepting bribes in 2003 and continued to do so until he retired in September 2017. The Information alleges the bribes consisted of cash, free meals, drinks, and other benefits bestowed upon Pada by executives at a construction planning and design firm in return for Pada expediting and approving permits for building and construction plans. In addition, Pada is alleged to have solicited, accepted, and concealed an interest-free $85,000 loan facilitated by a construction planning and design firm executive.
According to a separate Information filed on November 2, 2023, Cyril Yu, 41, of San Francisco, began accepting bribes in January 2018 and continued to do so until February 2021. The Information alleges the bribes consisted of cash, free meals, drinks, and other benefits bestowed upon Yu by executives at a construction planning and design firm in return for Yu expediting and approving permits for building and construction plans.
The Informations allege that DBI is a regulatory agency in the City and County of San Francisco responsible for overseeing enforcement of building, electrical, plumbing, and housing codes for San Francisco’s more than 200,000 commercial and residential buildings. According to the Informations, contractors and builders submit construction plans to DBI for approval and permitting; the plans must be reviewed and approved by DBI to ensure that proposed construction plans meet City codes and regulations.
An information merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. Pada and Yu were each charged with one count of conspiracy to commit honest services wire fraud in violation of 18 U.S.C. § 1349. If convicted, each defendant faces a maximum sentence of 20 years imprisonment, and a fine of up to $250,000. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
The case is being prosecuted by the Corporate and Securities Fraud Section of the United States Attorney’s Office. Assistant U.S. Attorneys David Ward and Ilham Hosseini are prosecuting the case, which is the result of an investigation by the FBI
Two Former Corrections Officers Plead Guilty to Federal Civil Rights Charges in Connection with Death of Inmate at West Virginia JailRead the Press Release
Two former corrections officers from the Southern Regional Jail in Beaver, West Virginia, pleaded guilty yesterday for their respective roles in an assault that resulted in the death of an inmate, identified by the initials Q.B., on March 1, 2022. Steven Nicholas Wimmer and Andrew Fleshman each pleaded guilty to conspiring with other officers to use unreasonable force against Q.B.
According to their plea agreements, Wimmer and Fleshman each acknowledged that they separately responded to a call for officer assistance after Q.B. tried to push past another correctional officer and leave his assigned pod and that, when each arrived at the pod, Q.B. was on the floor as force was being used against him. The officers restrained and handcuffed Q.B. Wimmer, Fleshman and other members of the conspiracy then escorted Q.B. to an interview room where members of the conspiracy, aided and abetted by each other, struck and injured Q.B. while he was restrained, handcuffed and posed no threat to anyone. Wimmer and Fleshman each admitted that the members of the conspiracy struck and injured Q.B. in the interview room in order to punish him for attempting to leave his assigned pod.
In his plea agreement, Fleshman further admits that he was one of the members of the conspiracy who injured Q.B. inside the interview room while Q.B. was restrained, handcuffed and posed no threat. Fleshman acknowledged that he and others then removed Q.B. from the interview room to a cell, where members of the conspiracy struck and injured Q.B. to punish him while he was restrained, handcuffed and while he posed no threat to anyone.
In his plea agreement, Wimmer further admitted that he struck and injured Q.B. after he was brought to the cell to punish Q.B. while he was restrained, handcuffed and while he posed no threat to anyone.
Wimmer and Fleshman each pleaded guilty today before U.S. District Court Judge Frank W. Volk. Sentencing hearings are scheduled for Feb. 22, 2024. According to their respective plea agreements, Wimmer and Fleshman each face a maximum penalty of 10 years in prison and a fine of up to $250,000.
Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division, U.S. Attorney William S. Thompson for the Southern District of West Virginia and Special Agent in Charge Michael D. Nordwall of the FBI Pittsburgh Field Office made the announcement.
The FBI Pittsburgh Field Office is investigating the case.
Deputy Chief Christine M. Siscaretti and Trial Attorney Matthew Tannenbaum of the Justice Department’s Civil Rights Division and Deputy Criminal Chief Monica Coleman for the Southern District of West Virginia are prosecuting the case.
Truth or Consequences Man Sentenced to 25 Years in Prison for Production of Child PornographyRead the Press Release
ALBUQUERQUE – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, and Francisco B. Burrola, Special Agent in Charge of Homeland Security Investigations (HSI) El Paso, announced that James Dooly Pollock was sentenced to 25 years in prison. Pollock, 39, of Truth or Consequences, pled guilty in federal court on July 13, 2022, to production of a visual depiction of a minor engaging in sexually explicit conduct.
On Dec 30, 2021, the father of a 14-year-old victim submitted his daughter’s cell phone to the Truth or Consequences Police Department (TCPD) and reported that the cell phone contained video of an adult male having sex with the victim. After obtaining the father’s permission and a search warrant, TCPD transferred the cell phone to New Mexico State Police (NMSP) for extraction of the phone’s contents. Approximately eight videos of Pollock and the victim were found within "WhatsApp" chats. Within the chats, there was also a message where Pollock told the victim, “You need to get an appslock app to hide things on your phone.”
Upon his release from prison, Pollock will be subject to 10 years of supervised release and must register as a sex offender.
Homeland Security Investigations, the NMSP and TCPD investigated this case. Assistant United States Attorneys Clara Cobos and Marisa Ong are prosecuting the case as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
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Three Louisville Men Sentenced in Federal Court for Fentanyl and Heroin Trafficking Related OffensesRead the Press Release
Louisville, KY – This week, the third and final local man was sentenced to federal prison for fentanyl and heroin trafficking related offenses. One man was also sentenced for illegally possessing a firearm as a previously convicted felon.
U.S. Attorney Michael A. Bennett of the Western District of Kentucky, Special Agent in Charge Michael E. Stansbury of the FBI Louisville Field Office, and Chief Jacquelyn Gwinn-Villaroel of the Louisville Metro Police Department made the announcement.
On July 27, 2023, Ramontez Bell, 23, was sentenced to 5 years in prison, followed by 4 years of supervised release, for conspiring to possess with the intent to distribute 40 grams or more of a fentanyl mixture and a mixture of heroin, possessing with the intent to distribute a fentanyl mixture, and possession of a firearm by a convicted felon. Bell was prohibited from possessing a firearm because he had previously been convicted of the following felony offense. On August 22, 2019, Bell was convicted in Jefferson Circuit Court of complicity to tampering with physical evidence.
Also on July 27, 2023, Duane Johnson, 33, was sentenced to 5 years in prison, followed by 4 years of supervised release, for conspiring to possess with the intent to distribute 40 grams or more of a fentanyl mixture and a mixture of heroin.
On November 2, 2023, Keidrick Grinstead, 33, was sentenced to 7 years in prison, followed by 4 years of supervised release, for conspiring to possess with the intent to distribute 40 grams or more of a fentanyl mixture and a mixture of heroin.
There is no parole in the federal system.
The FBI Louisville Field Office Safe Streets Task Force and LMPD investigated the case.
The case was prosecuted by Assistant United States Attorney Frank Dahl.
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Three Individuals Sentenced for Bribery Scheme at Ft. Gregg-AdamsRead the Press Release
RICHMOND, Va. – A Hopewell couple and Missouri man were sentenced yesterday for conspiring to bribe a public official.
Susan May Keim, 54, was sentenced to 30 months in prison; Russell John Keim Sr., 60, was sentenced to 18 months in prison; and Rodney Gale Wilson, 67, of Imperial, Missouri, was sentenced to 45 months in prison. All three defendants previously pleaded guilty to conspiracy to offer bribes to a public official and to accept bribes as a public official.
According to court documents, from approximately June 2013 through October 2018, Susan Keim and her husband Russell Keim accepted bribes from Wilson in return for Susan Keim’s award of purchase orders to Wilson’s company to sell parts and materials to U.S. Army Garrison Fort Gregg-Adams, formerly known as Fort Lee. Susan Keim worked for Skookum Educational Services, a company that contracted with the federal government to provide maintenance and supply services at Fort Gregg-Adams. Under the contract, the federal government reimbursed Skookum for the cost of the supplies it purchased for Fort Gregg-Adams. Wilson was the owner of C&L Supply, a company formed for the sole purpose of selling supplies to Skookum for use at Fort Gregg-Adams. C&L Supply sometimes sold the supplies to Skookum at a substantial markup, a cost which was passed on to the federal government. From 2013 to 2018, in return for the award of purchase orders worth over $900,000, Wilson provided checks and cash payments to Susan and Russell Keim disguised as compensation to Russell Keim for work he purportedly performed for C&L Supply and payments for work done on a property owned by the Keims.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Nicole M. Argentieri, Acting Assistant Attorney General of the Justice Department’s Criminal Division; Stanley M. Meador, Special Agent in Charge of the FBI Richmond Field Office; Michael C. Curran, Acting Special Agent in Charge of the U.S. Army Criminal Investigation Division’s (CID) Major Procurement Fraud Field Office (MPFFO); and Christopher Dillard, Special Agent in Charge of the Department of Defense Office of Inspector General, Defense Criminal Investigative Service’s (DCIS) Mid-Atlantic Field Office, made the announcement after sentencing by U.S. District Judge Senior U.S District Judge John A. Gibney, Jr.
Assistant U.S. Attorney Michael C. Moore and Trial Attorney Lauren Britsch Slater of the Criminal Division’s Public Integrity Section prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:21-cr-083.
Three Individuals Sentenced for Bribery SchemeRead the Press Release
A Virginia couple and Missouri man were sentenced yesterday for conspiring to bribe a public official.
Susan May Keim, 54, of Hopewell, Virginia, was sentenced to 30 months in prison; Russell John Keim Sr., 60, also of Hopewell, was sentenced to 18 months in prison; and Rodney Gale Wilson, 67, of Imperial, Missouri, was sentenced to 45 months in prison. All three defendants pleaded guilty to conspiracy to offer bribes to a public official and to accept bribes as a public official.
According to court documents, Susan Keim and her husband Russell Keim accepted bribes from Wilson in return for Susan Keim’s award of purchase orders to Wilson’s company to sell parts and materials to U.S. Army Garrison Fort Lee (redesignated as Fort Gregg-Adams). Susan Keim worked for Skookum Educational Services, a company that contracted with the federal government to provide maintenance and supply services at Fort Lee. Under the contract, the federal government reimbursed Skookum for the cost of the supplies it purchased for Fort Lee. Wilson was the owner of C&L Supply, a company formed for the sole purpose of selling supplies to Skookum for use at Fort Lee. C&L Supply sometimes sold the supplies to Skookum at a substantial markup, a cost which was passed on to the federal government. From 2013 to 2018, in return for the award of purchase orders worth over $900,000, Wilson provided checks and cash payments to Susan and Russell Keim disguised as compensation to Russell Keim for work he purportedly performed for C&L Supply and payments for work done on a property owned by the Keims.
Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division, U.S. Attorney Jessica D. Aber for the Eastern District of Virginia, Special Agent in Charge Stanley M. Meador of the FBI Richmond Field Office, Acting Special Agent in Charge Michael C. Curran of the U.S. Army Criminal Investigation Division (CID)'s Major Procurement Fraud Field Office (MPFFO), and Special Agent in Charge Christopher Dillard of the Department of Defense Office of Inspector General, Defense Criminal Investigative Service (DCIS)'s Mid-Atlantic Field Office made the announcement.
The FBI Richmond Field Office, Army CID’s MPFFO, and DCIS investigated the case.
Trial Attorney Lauren Britsch Slater of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Michael C. Moore for the Eastern District of Virginia prosecuted the case.
Texas Resident Sentenced for Federal Firearms CrimeRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Shawn Lee Karr, age 37, of Howe, Texas, was sentenced for possession of stolen firearms. Karr was sentenced to twelve months and one day in prison for one count of Possession of Stolen Firearms, in violation of 18 U.S.C.§ 922(j).
The charges arose from investigations by the Defense Criminal Investigative Service (DCIS), the General Services Administration – Office of Inspector General, and the Bureau of Alcohol, Tobacco, Firearms and Explosives, with assistance from the Oklahoma State Bureau of Investigations and the Federal Bureau of Investigation.
On August 17, 2022, Karr pleaded guilty to Possession of Stolen Firearms. According to investigators, between 2018 and 2019, Karr pawned his department-issued firearms while employed as a police officer for Oklahoma police departments in Bennington, Bokchito, and Boswell. The firearms were federally issued weapons on loan from the Department of Defense’s Defense Logistics Agency’s Law Enforcement Support Office and from the General Services Administration’s Federal Surplus Personal Property Donation Program. Karr pawned the federally owned firearms at a Calera, Oklahoma, pawn shop.
“The DoD Office of Inspector General, Defense Criminal Investigative Service (DCIS) and our partners are committed to safeguarding sensitive property from the Defense Logistics Agency’s Law Enforcement Support Office (LESO), which works with qualifying law enforcement agencies to facilitate the transfer of excess DoD property under strict program guidelines,” said Gregory P. Shilling, Acting Special Agent in Charge of the DCIS’ Southwest Field Office. “Today’s sentencing highlights the very real consequences for those holding a position of trust and choose to compromise the LESO program for personal gain.”
“GSA’s Federal Surplus Personal Property Donation Program provides local government, non-profit, and educational organizations access to property the federal government no longer needs,” said GSA OIG Special Agent in Charge Jamie Willemin of the Southwest and Rocky Mountain Investigations Division. “GSA OIG and our investigative partners will continue to investigate and hold accountable those who exploit such programs for personal financial gain.”
“Protecting federal property from waste, fraud, and abuse is a priority of the Department of Justice,” said United States Attorney Christopher J. Wilson. “The defendant had no right to pawn the firearms he was issued as part of his employment as a law enforcement officer, and he is now facing the consequences for his actions.”
The Honorable Ronald A. White, Chief District Judge in the United States District Court for the Eastern District of Oklahoma, presided over the hearings in Muskogee, Oklahoma. Karr will self-report on November 30, 2023, to a designated United States Bureau of Prisons facility to serve a non-paroleable sentence of incarceration.
Assistant United States Attorney Kara Traster represented the United States.
Texas Man Pleads Guilty to Cocaine Trafficking in Lackawanna CountyRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Luis Gonzalez, age 27, of El Paso, Texas, pleaded guilty on November 2, 2023, before U.S. District Court Judge Robert D. Mariani, to the charge of possession with intent to distribute more than five kilograms of cocaine.
According to United States Attorney Gerard M. Karam, Gonzalez admitted to possessing between 15 kilograms and 50 kilograms of cocaine for further distribution in the Lackawanna County area in September 2022. The charges stem from an incident on September 29, 2022, in which members of the Pennsylvania State Police made a traffic stop of a vehicle in Lackawanna County. Gonzalez and codefendant, Jose Torres, age 27, of El Paso, Texas were the occupants of the vehicle. A subsequent search of the vehicle resulted in the seizure of sixteen individually wrapped kilograms of cocaine, having a street-value of approximately $500,000.
The charges against Jose Torres remain outstanding.
The investigation was conducted by the United States Drug Enforcement Administration (DEA), the Pennsylvania State Police and the Scranton Police Department. Assistant United States Attorney Robert J. O’Hara is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Under federal law, the offense carries a mandatory minimum sentence of ten years in prison. The maximum penalty under federal law is up to life in prison, a term of supervised release following imprisonment, and a fine. A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
All persons charged are presumed to be innocent unless and until found guilty in court.
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Tax Preparer Sentenced to Prison for $1.4M Fraud SchemeRead the Press Release
ALEXANDRIA, Va. – An Alexandria man was sentenced today to 18 months in prison for defrauding the U.S. government of approximately $1.4 million in tax revenue by preparing false tax returns on behalf of his unsuspecting clients.
According to court documents, between 2016 and 2020, Lawrence Appiah-Osei, 58, ran a tax preparation business called New Look Enterprise out of his home in Alexandria. From at least 2017 through 2020, Appiah-Osei executed a scheme to fraudulently inflate the tax refunds of his clients. To do so, Appiah-Osei falsely claimed that his clients operated businesses that lost thousands of dollars each year. These fraudulent losses drove down the clients’ taxable income and increased the clients’ tax refunds. The Internal Revenue Service-Criminal Investigation (IRS-CI) estimates the Appiah-Osei’s actions resulted in a tax loss of approximately $1.4 million to the federal government.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia, and Kareem A. Carter, IRS Criminal Investigation Acting Special Agent in Charge of the Washington D.C. Field Office, made the announcement after sentencing by Senior U.S. District Judge T.S. Ellis, III.
Assistant U.S. Attorney Christopher Hood prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:23-cr-113.
Stilwell Resident Sentenced for Federal Firearms CrimeRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Brandon Lee Workman, age 37, of Stilwell, Oklahoma, was sentenced to 72 months in prison for one count of possessing a firearm after a felony conviction and 72 months in prison for one count of possessing ammunition after a felony conviction. These sentences will run concurrently.
The charges arose from investigations by the Adair County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
On August 10, 2022, Workman pleaded guilty to the offenses. According to investigators, law enforcement officers responding to an emergency call on May 9, 2022, discovered Workman in possession of a revolver and .38 Special ammunition despite a prior conviction for a crime punishable by imprisonment for a term exceeding one year.
The Honorable Rodney W. Sippel, Senior U.S. District Judge in the United States District Courts for the Eastern and Western Districts of Missouri, sitting by assignment, presided over the hearing in Muskogee, Oklahoma. Workman will remain in custody of the U.S. Marshal pending transportation to a designated United States Bureau of Prisons facility to serve a non-paroleable sentence of incarceration.
Assistant United States Attorneys Zachary Parsons and Kevin Gross represented the United States.
Stilwell Resident Pleads Guilty to Arson in Indian CountryRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Arron Lee Gonzalis, age 27, of Stilwell, Oklahoma, entered a guilty plea to one count of Arson in Indian Country.
The Indictment alleged that Gonzalis willfully and maliciously set fire to and burned a building.
The crime occurred in Adair County, within the boundaries of the Cherokee Nation Reservation, in the Eastern District of Oklahoma.
The charges arose from an investigation by the Stilwell Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
The Honorable Jason A. Robertson, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, accepted the plea and ordered the completion of a presentence investigation report. Gonzalis was remanded to the custody of the U.S. Marshal pending sentencing.
Assistant United States Attorney Kevin Gross represented the United States.
Sharon Naylor Sentenced for Her Role in Operating Pill MillRead the Press Release
KNOXVILLE, Tenn. – On November 2, 2023, Sharon Naylor, 58, of Junction City, Kentucky, was sentenced to a term of imprisonment of 12 months and one day by the Honorable Thomas A. Varlan, United States District Judge, in the United States District Court for the Eastern District of Tennessee at Knoxville.
As part of the plea agreement filed with the court, Naylor waived an indictment by a Federal Grand Jury and agreed to plead guilty to an information charging her with one count of maintaining a drug premises, in violation of 21 U.S.C. § 856; Naylor also pleaded guilty to an indictment charging her with one count of money laundering, in violation of 18 U.S.C. § 1957. Following her incarceration, Naylor will be on supervised release for one year. In addition, Naylor was also ordered to forfeit the proceeds of her crime, including approximately $1.9 million in real property, cash, gold and silver coins and bouillon, all of which were seized by the United States.
According to court documents, Naylor, a nurse practitioner, owned and managed a non-insurance, cash-equivalent pain clinic named Lafollette Wellness Center (LWC), in Campbell County, Tennessee. Naylor continued to own and operate LWC, despite knowing that the medical director, co-defendant Dr. Henry Babenco, and the physician’s assistant, co-defendant Alicia Taylor, were prescribing opioids to patients outside professional practice and for no legitimate medical purpose.
Naylor, Babenco, Taylor, and LWC office manager, Gregory Madron, were charged with drug-related offenses as part of the April 2019 Appalachian Regional Prescription Opioid Strike Force Surge; Taylor pleaded guilty to her role in the distribution of controlled substances in May 2021, Madron pleaded guilty to a misdemeanor offense for his role in September 2023. Babenco died in a plane crash in February 2021. Madron and Taylor are scheduled to be sentenced in January and February 2024, respectively.
U.S. Attorney Francis. M. Hamilton III, of the Eastern District of Tennessee; Special Agent in Charge J. Todd Scott, of the Drug Enforcement Administration (DEA); and Special Agent in Charge Joseph E. Carrico, of the Federal Bureau of Investigation (FBI), made the announcement.
The charges were the result of an investigation by the DEA, the FBI, the Tennessee Bureau of Investigation, and assisted by the Appalachian Regional Prescription Opioid Task Force.
Assistant U.S. Attorney Anne-Marie Svolto of the Eastern District of Tennessee is prosecuting the case. The Justice Department’s Fraud Section Appalachian Regional Prescription Opioid Strike Force (ARPO) and Assistant U.S. Attorney Emily Petro of the Middle District of Tennessee, formerly of the Justice Department’s Fraud Section, provided valuable assistance.
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Seminole Resident Sentenced for Federal Firearm CrimeRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Derrick Dewayne Louie-Jackson, age 44, of Seminole, Oklahoma, was sentenced to 51 months in prison for one count of Felon in Possession of Ammunition.
The charge arose from investigations by the Seminole Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
On August 3, 2022, a federal jury convicted Louie-Jackson at trial of one count of the offense Felon in Possession of Ammunition. On or about April 28, 2022, upon execution of an arrest warrant, Louie-Jackson was found in possession of ammunition. Louie-Jackson, a felon, was previously convicted of an offense punishable by more than a year of incarceration.
The Honorable John F. Heil, III, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, presided over the hearing in Muskogee. Louie-Jackson will remain in custody of the U.S. Marshal pending transportation to a designated United States Bureau of Prisons facility to serve a non-paroleable sentence of incarceration.
The United States was represented at trial by Assistant United States Attorneys Kevin Cheung and Jarrod Leaman.
St. Croix Man Sentenced to 102 Months Incarceration on Cocaine Possession ConvictionRead the Press Release
St. Croix, VI – United States Attorney Delia L. Smith announced today that Kareme Holst, 46, a St. Croix native and resident of Colorado, was sentenced by District Court Judge Wilma A. Lewis to 102 months imprisonment followed by five years of supervised release and a fine of $1,000.00, on his conviction of possession with intent to distribute cocaine. Holst pleaded guilty on August 25, 2022.
According to court documents, on October 18, 2021, Holst was a ticketed passenger on an American Airlines flight from St. Croix to Miami, FL. During his preboarding inspection at the Henry Rohlsen Airport, Customs and Border Patrol officers discovered approximately three kilograms of cocaine hidden in jars of coconut packed in Holst’s luggage. Officers also found bags of cocaine concealed in the pockets of clothing pack in Holst’s suitcase. When interviewed, Holst admitted that the luggage belonged to him and that he packed each bag.
This case was investigated by Homeland Security Investigations and Customs and Border Patrol and prosecuted by Assistant United States Attorney Rhonda Williams-Henry. This investigation is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Rashad Trice Trial Date Set for April 16 in Wynter Cole-Smith CaseRead the Press Release
GRAND RAPIDS, MICHIGAN — U.S. Attorney for the Western District of Michigan Mark Totten today announced that a trial date for Rashad Maleek Trice, 26, has been set for April 16, 2024. U.S. District Judge Robert J. Jonker scheduled the trial date following today’s status conference.
“My office is ready and fully prepared to make our case against Mr. Trice at a fair trial as we seek a measure of justice for Wynter Cole-Smith and her family,” said U.S. Attorney Totten.
Trice has been indicted and arraigned for kidnapping two-year-old Wynter Cole-Smith, resulting in her death and kidnapping a minor. Trice was charged by criminal complaint on July 7, 2023, to secure his immediate detention, and indicted on July 26 to satisfy his constitutional right to federal indictment by a grand jury. On August 7, 2023, he pleaded not guilty to the charges against him and remains in custody.
Trice is charged with two counts. The first count is kidnapping resulting in death, in violation of 18 U.S.C. § 1201(a)(1). If convicted, the statutory mandatory minimum sentence is life in prison. The second count is kidnapping of a minor, in violation of 18 U.S.C. §§ 1201(a)(1) and (g)(1). If convicted, the statutory mandatory minimum sentence is 20 years in prison with a maximum possible sentence of life in prison.
The charges in an indictment are merely accusations, and a defendant is presumed innocent until and unless proven guilty in a court of law.
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Trice Pleads Not Guilty During Arraignment In Wynter Cole-Smith Case
Trice was Previously Indicted for Kidnapping Resulting in Death and Kidnapping a Minor
Monday, August 7, 2023
Trice Indicted For Kidnapping Resulting In Death And Kidnapping A Minor In Wynter Cole-Smith Case
Wednesday, July 26, 2023
U.S. Attorney Totten Announces Federal Charges In The Kidnapping Of 2-Year-Old Wynter Cole-Smith
Friday, July 7, 2023
Queens Man Pleads Guilty to Co-Leading One of the Largest No-Fault Insurance Frauds in New York HistoryRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that ALEXANDER GULKAROV pled guilty today to conspiracy to commit bribery, conspiracy to commit healthcare fraud, and aggravated identity theft in connection with his orchestration of a $40 million fraud targeting no-fault automobile insurance companies. GULKAROV further admitted to obstructing law enforcement’s investigation by fabricating documents and intimidating witnesses.
U.S. Attorney Damian Williams said: “Alexander Gulkarov was one of the leaders of a multifaceted scheme to defraud automobile insurance companies; bribe hospital employees, 911 dispatchers, and others; launder hundreds of thousands of dollars; and obstruct law enforcement. This complex scheme resulted in over $40 million in losses, which Gulkarov used to fund his lavish lifestyle, taking luxury vacations and renovating his multimillion-dollar home. This Office has no tolerance for those who cheat the system to wrongfully enrich themselves, and we will continue to dismantle wide-ranging schemes such as this one.”
According to the Information to which GULKAROV pled guilty, the plea agreement, and statements made in court:
The Healthcare Fraud Scheme
New York and New Jersey no-fault insurance laws require a driver’s automobile insurance company to pay automobile insurance claims automatically for certain types of motor vehicle accidents, provided that the claim is legitimate and below a particular monetary threshold. Pursuant to these requirements, insurance companies will often pay medical service providers directly for the treatment they provide to automobile accident victims without the need to bill the victims themselves. This process resolves automobile claims without apportioning blame or fault for the accident, thereby avoiding protracted disputes and the costs associated with an extended investigation of the accident.
From 2014 through 2021, GULKAROV and others (collectively, the “Clinic Controllers”) agreed that they would unlawfully own, run, and profit from medical clinics in the New York area and that GULKAROV would also profit from pharmacies in the New York area that were unlawfully owned and controlled by other Clinic Controllers. GULKAROV knew that clinics and pharmacies are unable to bill insurance companies for No-Fault benefits if the medical facilities are controlled by non-physicians. GULKAROV nonetheless agreed with others to submit bills to insurance companies falsely representing that the clinics were owned and operated by licensed medical practitioners and for medical practitioners to lie under oath during Examinations under Oath about the ownership, control, and finances of the clinics. GULKAROV personally coached medical practitioners to lie under oath. GULKAROV and his fellow Clinic Controllers unlawfully obtained from insurance companies at least $40,000,000 as part of the scheme.
In connection with the scheme described above, GULKAROV personally approached medical practitioners, including physicians, and directed them to prescribe unnecessary medical treatments (including MRIs, EMG/NCV testing, spinal injections, and computerized radiologic mensuration analysis), unnecessary durable medical equipment (including cervical home traction devices and lumbar back support), and medically unnecessary medications (including prescription strength painkillers, topical creams, and topical gels). GULKAROV received kickbacks from MRI facilities, pain management doctors, and other specialized care providers, who performed these unnecessary medical treatments. GULKAROV further personally arranged for the unnecessary medications to be filled at pharmacies under the control of other Clinic Controllers. The medical practitioners provided necessary procedures and treatments to patients as well.
GULKAROV also overbilled insurance companies for treatments provided by medical practitioners. In connection with the scheme, GULKAROV owned and operated a billing company called “Billing for You.” Billing for You submitted bills to insurance companies overstating the amount of time that practitioners spent treating patients. Billing for You also used improper, unlisted billing codes to bill insurance companies in excess of what is permitted under No-Fault regulations.
The Bribery Scheme
GULKAROV and his fellow Clinic Controllers further agreed to pay bribes in connection with the above-described scheme. From at least 2014 through November 2019, GULKAROV agreed with others to pay bribes to hospital employees, 911 dispatchers, and other individuals for the confidential names and numbers of motor vehicle accident victims. As part of the scheme, GULKAROV and others provided approximately $150,000 for the creation of a call center, operated by Anthony Rose, a/k/a “Todd Chambers,” that called victims and lied to them to induce victims to receive medical treatment at, among other places, clinics controlled by GULKAROV and his associates. GULKAROV further personally paid Anthony Rose hundreds of thousands of dollars in bribe payments in cash.
As part of the scheme, GULKAROV arranged for a New York City police officer to provide confidential information from New York City Police Department (“NYPD”) servers. In particular, this officer sent GULKAROV over 400 photos of confidential NYPD motor vehicle accident reports using the encrypted messaging application, WhatsApp. GULKAROV then re-transmitted the reports to Rose and others so that they could call patients, lie to them, and direct them to clinics controlled by GULKAROV and others.
Money Laundering and Obstruction Conduct
GULKAROV laundered the proceeds of the bribery and healthcare fraud from the bank accounts of the medical clinics and pharmacies to personal accounts using a variety of methods. Among other things, GULKAROV personally told medical practitioners to sign blank checks from the clinics’ bank accounts, which GULKAROV used to pay personal expenses such as luxury vacations around the world, expensive meals, jewelry, and parties. GULKAROV also used the blank checks to pay for hundreds of thousands of dollars of construction-related expenses for this three-story, multimillion-dollar home in Queens, New York.
GULKAROV arranged for checks from the clinics’ bank accounts to be cashed at over a dozen shell companies under his control or the control of co-conspirators, including, for instance, “Sign N Drive Auto GRP,” “Transport on Wheels,” and “Sancus Consulting & Trading Inc.” Over two dozen of these shell companies were opened by foreign nationals, who entered the country on tourism visas, opened bank accounts for the shell companies, provided the debit cards to GULKAROV’s coconspirators, and then left the country.
GULKAROV additionally agreed to use Wisnicki & Associates and Wisnicki Neuhauser (collectively, the “Wisnicki Firm”) to launder proceeds from the No-Fault scheme. GULKAROV and his fellow Clinic Controllers wrote over $150,000 in checks to the Wisnicki Firm from the No-Fault clinics’ bank accounts. The Wisnicki Firm did not provide any legal services to the No-Fault clinics. Instead, the Wisnicki Firm used this money to purchase real estate for one of GULKAROV’s coconspirators. GULKAROV and his coconspirators deducted the payments to the Wisnicki Firm on the clinics’ tax returns as legal expenses.
Lastly, GULKAROV engaged in a multi-month obstruction scheme beginning in February 2021. In February and March 2021, the Government served grand jury subpoenas on the medical practitioners involved in the No-Fault scheme. GULKAROV immediately contacted at least half-a-dozen of his coconspirators and ordered them not to speak with law enforcement. In return, GULKAROV gave his coconspirators money to pay for attorneys. GULKAROV also obtained the phones of multiple practitioners and deleted his communications with them from their devices.
Thereafter, on or about April 1, 2021, the Government served a grand jury subpoena on the Wisnicki Firm for documentation surrounding the $150,000 in payments made from the clinics to the Wisnicki Firm. GULKAROV agreed with others that the Wisnicki Firm would fabricate retainer agreements for transmission to the grand jury. The fabricated retainer agreements, which were backdated to 2016 and 2017, falsely represented that the No-Fault clinics had retained the Wisnicki Firm for legal services.
During the following months, in or about April and May 2021, GULKAROV approached multiple medical practitioners and ordered them to sign the backdated, fabricated retainer agreements. The medical practitioners complied. GULKAROV also provided these medical practitioners with checks, written from the Wisnicki Firm, returning the purported “retainer fees” paid to the Wisnicki Firm. GULKAROV ordered the medical practitioners to deposit the checks, withdraw the money in small cash increments, and return the cash to GULKAROV. At least one medical practitioner complied.
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ALEXANDER GULKAROV, 37, of Queens, New York, pled guilty to one count of conspiracy to commit bribery, which carries a maximum sentence of five years in prison; one count of conspiracy to commit healthcare fraud, which carries a maximum sentence of five years in prison; and one count of aggravated identity theft, which carries a mandatory sentence of two years in prison to run consecutively to any other prison term imposed. As part of his plea agreement with the Government, GULKAROV agreed to pay forfeiture of $40,000,000 and restitution of $40,000,000.
The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as the sentencing of the defendant will be determined by a judge.
Mr. Williams praised the work of the Federal Bureau of Investigation.
This case is being handled by the Office’s Complex Frauds and Cybercrime Unit and the White Plains Division. Assistant U.S. Attorneys Mathew Andrews, Timothy Capozzi, and Ryan W. Allison are in charge of the prosecution.
Pittsburgh Resident Pleads Guilty to Drug Trafficking and Possessing a Firearm After a Felony ConvictionRead the Press Release
PITTSBURGH, PA – Todd Hill was convicted of fentanyl and heroin trafficking and possessing a firearm after a felony conviction, United States Attorney Eric G. Olshan announced today.
Hill, age 38 of Pittsburgh, pled guilty before United States District Judge Nora Barry Fischer. He pled guilty to (1) conspiring to distribute 40 grams or more of fentanyl and 100 grams or more of heroin, (2) possessing with intent to distribute 40 grams or more of a mixture containing fentanyl and heroin, and (3) possessing a firearm after a felony conviction. Sentencing will be scheduled on a date to be determined.
The law provides for a maximum total sentence of at least 10 years and up to life in prison and a fine of up to $16,250,000. Under the Federal Sentencing Guidelines, the actual sentences imposed are to be based upon the seriousness of the offenses and the prior criminal history of the defendant.
Assistant United States Attorney Craig W. Haller is prosecuting this case on behalf of the United States.
The Pennsylvania State Police; the Pittsburgh Police Department; the Bureau of Alcohol, Tobacco, Firearms, and Explosives; the United States Marshals Service; and the Federal Bureau of Investigation led the investigations leading to the convictions.
Pittsburg County Resident Sentenced for Assault with A Dangerous Weapon in Indian CountryRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Christopher Chad Thompson, age 32, of Amber, Oklahoma, was sentenced to 40 months in prison for one count of Assault with a Dangerous Weapon with Intent to do Bodily Harm in Indian Country.
The charges arose from investigations by the Quinton Police Department and the Federal Bureau of Investigation.
On October 17, 2022, Thompson pleaded guilty to assaulting the victim with a dangerous weapon with the intent to cause the victim bodily harm. According to investigators, Thompson assaulted and stabbed the victim during an altercation on January 14, 2019, causing significant bodily injury. The crime occurred in Pittsburg County, within the boundaries of the Choctaw Nation Reservation, in the Eastern District of Oklahoma.
The Honorable Ronald A. White, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, presided over the hearings in Muskogee. Thompson will remain in custody of the U.S. Marshal pending transportation to a designated United States Bureau of Prisons facility to serve a non-paroleable sentence of incarceration.
Assistant United States Attorney Ryan Bondura represented the United States.
Pere Marquette Developers Convicted of Mail Fraud, Money Laundering, and Bankruptcy ChargesRead the Press Release
PEORIA, Ill. – A federal jury today returned guilty verdicts after a day and a half of deliberations in the trial against Pere Marquette Hotel developers Gary E. Matthews, 81, of East Peoria, Illinois, and Monte J. Brannan, 70, of Peoria, Illinois. Matthews and Brannan were jointly charged with five counts of mail fraud and 13 counts of money laundering. Brannan was also charged, individually, with three counts related to bankruptcy fraud committed in his personal bankruptcy case. Matthews was found guilty on all mail fraud charges and 12 of the 13 money laundering counts. Brannan, who earlier in the trial had pleaded guilty to the bankruptcy fraud counts, was convicted on all 18 remaining counts. Sentencing for both Matthews and Brannan is scheduled for March 27, 2024, at the U.S. Courthouse in Peoria, Illinois.
Over 11 days of testimony, the government presented evidence to establish that Matthews and Brannan orchestrated a scheme to defraud their investors, the City of Peoria, Core Construction, Indure, and other lenders and creditors. The pair had conspired to disguise the fact that they were taking money from the hotel complex operations by claiming they were using the funds to pay for the mortgage and real estate taxes for the hotel. In the course of that scheme, the two illegally transferred funds to themselves in an effort to disguise the source and ownership of the money they had taken.
Both Matthews and Brannan were released with their current bonds in full force and effect. At sentencing, the defendants face statutory penalties of up to 20 years’ imprisonment for the mail fraud and money laundering charges, followed by up to five years of supervised release. The bankruptcy charges carry a possibility of up to five years’ imprisonment and up to three years of supervised release. Each of the counts carries the possibility of a $250,000 fine.
The case investigation was conducted by the United States Postal Inspection Service and the Internal Revenue Service Criminal Investigation. The bankruptcy fraud charge was referred for criminal prosecution by the Office of the United States Trustee for Region 10, Nancy J. Gargula. The U.S. Trustee Program is the component of the Justice Department that protects the integrity of the bankruptcy system by overseeing case administration and litigating to enforce the bankruptcy laws. Region 10 is headquartered in Indianapolis, with additional offices in South Bend, Indiana, and Peoria, Illinois. Assistant U.S. Attorneys Douglas F. McMeyer, Ronald L. Hanna, and William J. Lynch represented the government at trial. The case was presented to a federal grand jury for indictment by Criminal Chief Darilynn J. Knauss.
Part-Owner of Internet Provider for U.S. Troops at Kandahar Airfield Pleads Guilty to Tax EvasionRead the Press Release
A U.S. businessman pleaded guilty today to evading his federal income taxes.
According to court documents and statements made in court, since 2007, Robert N. Dooner has lived outside the United States, intermittently in the United Arab Emirates (UAE) and Ibiza, Spain. Starting in approximately 2007, Dooner worked as a business associate of Individual-1, an American living abroad. Together with others, including Individual-1, Dooner formed a joint venture incorporated in the UAE to provide internet services to U.S. military personnel at Kandahar Airfield in Afghanistan. Individual-1 helped fund the joint venture with proceeds from Company-1 – a business providing commodities to the U.S. Department of Defense in Kyrgyzstan, Afghanistan and the Middle East.
For 2015 through 2019, Dooner evaded taxes owed to the IRS by underreporting to his tax preparer the profits he earned from his ownership interest in the joint venture, as well as other compensation he received through his work for Individual-1. Dooner diverted his distributions to UAE bank accounts in the name of a Dubai-based shell company and then tried to conceal the foreign bank account records when they were specifically requested by U.S. authorities. In total, Dooner concealed approximately $2 million he earned from 2015 through 2019, causing a tax loss to the IRS of more than $744,977.
Dooner is the fifth defendant associated with the defense contracting company to plead guilty. Charles Squires pleaded guilty to tax evasion in February 2022, James Robar pleaded guilty to tax evasion in March 2022, Ronald “Ron” Thomas pleaded guilty to tax evasion in April 2022 and Zachary “Zack” Friedman pleaded guilty to tax evasion in August 2022.
Dooner faces a maximum penalty of five years in prison. He also faces a period of supervised release, restitution and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Matthew M. Graves for the District of Columbia made the announcement.
IRS-Criminal Investigation and the Special Inspector General for Afghanistan Reconstruction are investigating the case. Assistance was provided by the Joint Chiefs of Global Tax Enforcement (J5), which brings together the taxing authorities of Australia, Canada, the Netherlands, the United Kingdom and the United States. The Tax Division and U.S. Attorney’s Office thank His Majesty’s Revenue and Customs of the United Kingdom for their extensive assistance in this matter.
Senior Litigation Counsel Nanette Davis and Trial Attorneys Sarah Ranney and Ezra Spiro of the Tax Division and Assistant U.S. Attorney Leslie Goemaat for the District of Columbia are prosecuting the case.
Part-Owner of Internet Provider for U.S. Troops at Kandahar Airfield Pleads Guilty to Tax EvasionRead the Press Release
WASHINGTON – A U.S. businessman pleaded guilty today to evading his federal income taxes. Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Matthew M. Graves for the District of Columbia made the announcement.
According to court documents and statements made in court, since 2007, Robert N. Dooner has lived outside the United States, intermittently in the United Arab Emirates (UAE) and Ibiza, Spain. Starting in approximately 2007, Dooner worked as a business associate of Individual-1, an American living abroad. Together with others, including Individual-1, Dooner formed a joint venture incorporated in the UAE to provide internet services to U.S. military personnel at Kandahar Airfield in Afghanistan. Individual-1 helped fund the joint venture with proceeds from Company-1 – a business providing commodities to the U.S. Department of Defense in Kyrgyzstan, Afghanistan, and the Middle East.
For 2015 through 2019, Dooner evaded taxes owed to the IRS by underreporting to his tax preparer the profits he earned from his ownership interest in the joint venture, as well as other compensation he received through his work for Individual-1. Dooner diverted his distributions to UAE bank accounts in the name of a Dubai-based shell company and then tried to conceal the foreign bank account records when they were specifically requested by U.S. authorities. In total, Dooner concealed approximately $2 million he earned from 2015 through 2019, causing a tax loss to the IRS of more than $744,977.
Dooner is the fifth defendant associated with the defense contracting company to plead guilty. Charles Squires pleaded guilty to tax evasion in February 2022, James Robar pleaded guilty to tax evasion in March 2022, Ronald “Ron” Thomas pleaded guilty to tax evasion in April 2022, and Zachary “Zack” Friedman pleaded guilty to tax evasion in August 2022.
Dooner faces a maximum penalty of five years in prison. He also faces a period of supervised release, restitution, and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
IRS-Criminal Investigation and the Special Inspector General for Afghanistan Reconstruction are investigating the case. Assistance was provided by the Joint Chiefs of Global Tax Enforcement (J5), which brings together the taxing authorities of Australia, Canada, the Netherlands, the United Kingdom, and the United States. The Tax Division and U.S. Attorney’s Office thank His Majesty’s Revenue and Customs of the United Kingdom for their extensive assistance in this matter.
Senior Litigation Counsel Nanette Davis and Trial Attorneys Sarah Ranney and Ezra Spiro of the Tax Division, and Assistant U.S. Attorney Leslie Goemaat of the District of Columbia are prosecuting the case.
Panama City Woman Sentenced to Federal Prison for Passing Counterfeit Federal Reserve NotesRead the Press Release
Jacksonville, Florida – U.S. District Judge Brian J. Davis has sentenced Lyndsey Rhea Markland (41, Panama City) to 12 months in federal prison for passing counterfeit Federal Reserve notes. The court also ordered Markland to pay restitution to the victims she defrauded. On June 8, 2023, Markland pleaded guilty to four counts of passing counterfeit Federal Reserve notes.
According to court documents and public records, in 2022, Markland entered various businesses in Brevard, Clay, Duval, and Seminole counties and purchased gift cards, merchandise, and food using counterfeit Federal Reserve notes. Law enforcement subsequently determined that Markland and her co-defendant, Neal Evan Pollman (42, Panama City), were staying at a hotel in Palm Bay. In November 2022, the Palm Bay Police Department (PBPD) executed a search warrant at their hotel room and located Markland inside the room. Also located in the room was approximately $30,000 in counterfeit currency and a printer, along with other tools used by Pollman to manufacture counterfeit Federal Reserve notes. Shortly after the execution of the search warrant, the PBPD located Pollman in the vicinity of the hotel and arrested him. When the officers searched Pollman, they recovered various counterfeit Federal Reserve notes on him which were traced back to his manufacturing activities. During a subsequent forensic examination of Pollman’s cellphone, law enforcement located images of Federal Reserve notes that Pollman used to manufacture the counterfeit currency.
Pollman and Markland appeared in federal court on April 27, 2023, pursuant to a writ bringing them to Jacksonville from the Bay County Jail, where they were serving jail sentences for violating their state probation on multiple charges related to passing counterfeit Federal Reserve notes. The court ordered Pollman and Markland detained.
On September 25, 2023, U.S. District Judge Davis sentenced Pollman to 18 months in federal prison for manufacturing counterfeit Federal Reserve notes. The court also ordered Pollman to pay restitution to the victims he defrauded.
This case was investigated by the Brevard County Sheriff’s Office, the Jacksonville Sheriff’s Office, the Palm Bay Police Department, the Orange Park Police Department, the Seminole County Sheriff’s Office, and the United States Secret Service - Jacksonville Field Office. It was prosecuted by Assistant United States Attorney Kevin C. Frein.
Puerto Rican Man Sentenced to 70 Months Incarceration on Cocaine Possession ConvictionRead the Press Release
St. Thomas, VI – United States Attorney Delia L. Smith announced today that Carlos Velez-Lopez, 25, of Fajardo, Puerto Rico, was sentenced to 70 months incarceration by Chief District Judge Robert A. Molloy after pleading guilty on February 21, 2023, to possession with intent to distribute cocaine.
According to court documents, on September 24, 2020, while conducting surveillance, Drug Enforcement Administration agents observed Emanuel Campbell Camacho approach a vehicle and remove a large, heavily weighted duffle bag from the vehicle. Camacho entered a waiting vehicle with the duffle bag and the vehicle took Camacho to the Windward Passage Hotel. After arriving at Windward Passage, Camacho carried the large duffel bag to the second floor of the hotel where Velez-Lopez was waiting. Agents approached both men and recovered 30 kilograms of cocaine from the duffle bag. Cell phones records later confirmed that Velez-Lopez and Camacho arranged the cocaine delivery. On June 21, 2023, Judge Molloy sentenced Camacho to 87 months incarceration for his role in the drug conspiracy.
This case was investigated by Drug Enforcement Administration, Homeland Security Investigations and Customs and Border Protection and prosecuted by Assistant United States Attorney Kyle Payne. The investigation is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Ohio man sentenced to 14 years for solicitation of child pornographyRead the Press Release
WHEELING, WEST VIRGINIA – An Ohio man has been sentenced to 14 years in prison for solicitation of child pornography.
Steven Wolford, age 26, of Cadiz, Ohio, was ordered to serve 168 months in federal prison after admitting to enticing and receiving sexually explicit images from a 9-year-old girl in Wetzel County, West Virginia. Wolford communicated with the victim through Facebook Messenger and officers discovered child pornography on two cellular phones that were seized from him during the execution of a search warrant.
“Thanks to the excellent work of law enforcement, Mr. Wolford won’t be able to victimize anyone for the next fourteen years,” said United States Attorney William Ihlenfeld. “Predators like Wolford walk among us, and the U.S. Attorney’s Office will continue to do everything in its power to protect children in our community.”
Assistant U.S. Attorney David J. Perri prosecuted the case on behalf of the government.
The case was investigated by the Wetzel County Sheriff’s Department and the Cadiz Police Department.
U.S. District Judge John Preston Bailey presided.
Ohio Man Sentenced to Prison for Fentanyl and Gun CrimesRead the Press Release
BECKLEY, W.Va. – La Percy Demond Allen, also known as “Pete,” 44, of Toledo, Ohio, was sentenced today to eight years and six months in prison, to be followed by three years of supervised release, for the distribution of fentanyl and for being a felon in possession of a firearm.
According to court documents and statements made in court, on July 27, 2021, Allen sold approximately 26 grams of fentanyl to a confidential informant in Beckley. Allen admitted to that transaction and to selling approximately 3.4 additional grams of fentanyl and approximately 53 grams of heroin to the informant during other transactions in Beckley between July 9, 2021, and August 4, 2021.
On August 10, 2021, law enforcement officers executed a search warrant at a Beckley residence and found approximately 53 grams of fentanyl, a loaded Hi-Point Model 995 9mm rifle, and $6,730. Allen admitted to possessing the firearm, cash and fentanyl. Allen further admitted that intended to distribute the fentanyl and that the money was from the distribution of heroin.
Federal law prohibits a person with a prior felony conviction from possessing a firearm or ammunition. Allen knew he was prohibited from possessing a firearm because of felony convictions for heroin trafficking and evidence tampering in the Scioto County, Ohio, Court of Common Pleas on December 10, 2013, and for trafficking and possessing cocaine base, also known as “crack,” in Lawrence County, Ohio, Common Please Court on December 29, 2008.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Beckley Raleigh County Drug and Violent Crime Unit, the Raleigh County Sheriff’s Department, the West Virginia State Police, and the Beckley Police Department.
United States District Judge Frank W. Volk imposed the sentence. Assistant U.S. Attorney Courtney L. Finney prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 5:21-cr-154 and 5:22-cr-2.
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New York man sentenced to 35 years in prison for surveilling and shooting a man in MiamiRead the Press Release
MIAMI – On Nov. 1, a New York man was sentenced to 35 years in federal prison, followed by five years of supervised release, for surveilling and later shooting a victim from point-blank range.
Julian Jimenez, 27, of New York, flew down from New York to Miami to kill the victim. Once Jimenez arrived in Miami, he surveilled his victim at the victim’s home and business. After four days of surveillance, Jimenez entered his victim’s residential community wearing a mask, gloves and holding a firearm. While the victim was in his vehicle about to pull into his garage, Jimenez ran up behind him and started shooting. Jimenez fired eight rounds at the victim. The victim survived but was hit three times and needed surgery to remove the projectiles left inside his body.
The sentence comes after Jimenez’s guilty plea in August. A restitution hearing is scheduled on Jan. 30, 2024.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida and Special Agent in Charge Jeffrey B. Veltri of FBI, Miami Field Office, announced the sentence imposed by U.S. District Judge Roy K. Altman.
FBI Miami’s Violent Crimes and Fugitive Task Force investigated the case. Assistant U.S. Attorneys Abbie D. Waxman, Michael E. Gilfarb and Katherine W. Guthrie prosecuted it.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 22-cr-20389.
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New Orleans Man Pleads Guilty to Violating Federal Gun Control Act and Possessing Car Stolen from Norfolk Southern RailyardRead the Press Release
NEW ORLEANS, LOUISIANA – DESMOND TAYLOR, age 27, a resident of New Orleans, Louisiana, pleaded guilty on November 2, 2023 before U.S. District Judge Jay C. Zainey to being a felon in possession of a firearm in violation Title 18, United States Code, Sections 922(g)(1) and 924(a)(8), and possession of goods stolen from an interstate shipment, in violation of Title 18, United States Code, Section 659.
According to court documents, on March 27, 2023, a 2023 Ford Explorer Timberline was stolen from the Norfolk Southern Automotive Distribution Facility. TAYLOR was captured on surveillance video occupying the Explorer on multiple occasions over the next week. On April 3, 2023, TAYLOR arrived at a residence in the Seventh Ward in the stolen Explorer with several other individuals. While inside the stolen vehicle, TAYLOR possessed an American Tactical Model MilSport, .223 caliber firearm. Prior to possessing the firearm, TAYLOR was convicted of drug and weapons felonies in Orleans Parish Criminal District Court, which disqualifies him from possessing a firearm.
TAYLOR faces a maximum term of imprisonment of 15 years on the felon in possession count and 10 years on the possession of stolen goods count. Each count also carries up to a $250,000 fine, up to 3 years of supervised release, and a $100 mandatory special assessment fee.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
This case was investigated by the Department of Homeland Security, Homeland Security Investigations, the Louisiana State Police, and the New Orleans Police Department. It is being prosecuted by Assistant United States Attorney David Berman of the Violent Crime Unit.
New Orleans Man Pleads Guilty to Drug Conspiracy, Firearm Conspiracy, and Hobbs Act RobberyRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Duane A. Evans announced that on November 2, 2023, JAMAL CLAY, a/k/a “Mal,” a/k/a “Young Mal,” a/k/a “O,” a/k/a “YM,” pled guilty to various violations of the Federal Controlled Substances Act, the Federal Gun Control Act, and Hobbs Act robbery. CLAY specifically pled guilty to Counts 1, 2, 3 and 4 of the superseding bill of information pending against him before U.S. District Judge Jane Triche Milazzo.
CLAY pled guilty to Count 1 of the superseding bill of information, in which he was charged with participating in a conspiracy to distribute and to possess with the intent to distribute 50 grams or more of a mixture or substance containing a detectable amount of methamphetamine, and a quantity of marijuana, in violation of Title 21, United States Code, Section 84l(a)(l), (b)(l )(B), (b)(1)(D), and 846. CLAY faces a minimum sentence of five years and a maximum sentence of 40 years imprisonment, a fine of up to $5,000,000.00, at least 4 years supervised release, and a $100.00 mandatory special assessment fee.
CLAY pled guilty to Count 2 of the superseding bill of information, in which he was charged with participating in a conspiracy to use firearms in furtherance of a drug trafficking crime and crime of violence, in violation of Title 18, United States Code, Section 924(o). CLAY faces a maximum sentence of 20 years in prison, a fine of up to $250,000.00, 3 years supervised release, and a $100.00 mandatory special assessment fee for this count.
CLAY pled guilty to Count 3 of the superseding bill of information, in which he was charged with participating in a Hobbs Act Robbery, in violation of Title 18, United States Code, Section 1951. CLAY faces a maximum sentence of 20 years in prison, a fine of up to $250,000.00, 3 years of supervised release, and a $100.00 mandatory special assessment fee for this count.
CLAY also pled guilty to Count 4 of the superseding bill of information, in which he was charged with possessing and brandishing a firearm in furtherance of and during and in relation to a crime of violence, in violation of Title 18, United States Code, Sections 924(c)(1)(A)(ii) and 2 (aiding and abetting). CLAY faces a mandatory minimum sentence of seven years to life in prison, a fine of up to $250,000.00, up to five years of supervised release, and a $100.00 mandatory special assessment fee. This sentence must be imposed consecutively to any other sentence.
According to public documents, in 2019, the Federal Bureau of Investigation investigated a group for committing various violent crimes and illegal drug trafficking, primarily in New Orleans East and the Ninth Ward section of New Orleans. Thereafter, CLAY, along with nine others, were indicted, for conspiring to possess firearms, traffic drugs and commit armed robberies of drug dealers. CLAY’s plea documents detail his role as a drug trafficker who often possessed firearms, as well as his participation in the armed robbery of a drug dealer’s home and the residents within it on September 25, 2019, in Violet, Louisiana.
CLAY’s sentencing is scheduled for February 21, 2024, at 9:30 a.m. before U.S. District Judge Jane Triche Milazzo.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
The case was investigated by the Federal Bureau of Investigation, the New Orleans Police Department, and the St. Bernard Sheriff’s Office. Assistant United States Attorneys Maurice Landrieu of the Narcotics Unit and Elizabeth Privitera, Chief of the Violent Crime Unit, are in charge of the prosecution.
Navy Sailor Indicted for Attempting to Entice and Meet A Minor Child to Engage in Sexual ActivityRead the Press Release
Jacksonville, Florida – United States Attorney Roger B. Handberg announces the return of an indictment charging Michael Buck Brockway (39, Jacksonville) with using the internet and his cellphone from July 17 through July 28, 2023, to attempt to entice a minor child to engage in sexual activity. If convicted, Brockway faces a minimum mandatory penalty of 10 years, up to life, in federal prison, and a potential life term of supervised release. Brockway was arrested on July 28, 2023, in Jacksonville, on related state charges. He was arraigned in federal court on November 2, 2023, and ordered detained pending trial.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Jacksonville Sheriff’s Office, the Naval Criminal Investigative Service, and the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney D. Rodney Brown.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue child victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Muskogee Resident Sentenced for Kidnapping and RobberyRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Ashton Marie Clark, age 31, of Muskogee, Oklahoma, was sentenced to 120 months in prison for one count of Kidnapping in Indian Country and 120 months in prison for one count of Robbery in Indian Country. The sentences will be served concurrently.
The charges arose from investigations by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Muskogee County Sheriff’s Office, and the Muskogee Police Department.
On September 14, 2022, Clark pleaded guilty to one count of Kidnapping in Indian Country and one count of Robbery in Indian Country. According to investigators, on September 11, 2021, Clark and her co-defendant kidnapped and assaulted one victim, and robbed another victim, stealing a car and personal items at gunpoint.
The crimes occurred in Muskogee County, within the boundaries of the Muscogee Creek Nation Reservation, in the Eastern District of Oklahoma.
The Honorable Ronald A. White, Chief U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, presided over the hearing in Muskogee. Clark will remain in the custody of the U.S. Marshal pending transportation to a designated United States Bureau of Prisons facility to serve a non-paroleable sentence of incarceration.
Assistant United States Attorneys Erin Cornell and Casey Richmond represented the United States.
Mother and Son Indicted for Violating Federal Controlled Substances ActRead the Press Release
NEW ORLEANS, LA – United States Attorney Duane A. Evans announced that on October 26, 2023, JERAD M. BARRETT, a/k/a “Mackenzie,” “Mack,” “Big Mack,” age 40, and JENNIE L. JAMES, age 66, both of New Orleans, , were charged in a recently unsealed four-count indictment for conspiracy to distribute and possess with intent to distribute 500 grams or more of methamphetamine, a quantity of amphetamine, and 100 kilograms or more of marijuana in violation of Title 21, United States Code, Sections 846, 841(a)(1), 841(b)(1)(A), 841(b)(1)(B), and 841(b)(1)(C), possession with intent to distribute 500 grams or more of methamphetamine, a quantity of amphetamine, and 100 kilograms or more of marijuana in violation of Title 21, United States Code, Sections 841(a)(1), 841(b)(1)(A), 841(b)(1)(B), and 841(b)(1)(C), possession with intent to distribute 100 kilograms or more of marijuana in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(B), and maintaining a drug-involved premises in violation of Title 21, United States Code, Section 856(a)(1).
The Jefferson Parish Sheriff’s Office and the Federal Bureau of Investigation began investigating BARRETT after receiving information regarding his narcotics distribution activity. As a result of this investigation, agents recovered over 500 grams of methamphetamine, a quantity of amphetamine pills, and approximately 940 kilograms of marijuana stored in plastic bins and barrels from within his residence and multiple storage units. Agents also uncovered communications between JAMES and BARRETT related to the distribution, packaging, and relocation of narcotics within the Eastern District of Louisiana.
If convicted of conspiracy to distribute and possess with intent to controlled substances, BARRETT and JAMES each face a minimum of ten (10) years up to life imprisonment, a fine of up to $10,000,000.00, and a minimum of five (5) years of supervised release following any term of imprisonment. If convicted of possession with intent to distribute 500 grams or more of methamphetamine, amphetamine, and 100 kilograms or more of marijuana, BARRETT faces a minimum of ten (10) years up to life imprisonment, a fine of up to $10,000,000.00, and a minimum of five (5) years of supervised release following any term of imprisonment. If convicted of possession with intent to distribute 100 kilograms or more of marijuana, BARRETT faces a minimum of five (5) years up to forty (40) years imprisonment, a fine of up to $5,000,000.00, and a minimum of four (4) years of supervised release following any term of imprisonment. If convicted of maintaining a drug-involved premises, BARRETT and JAMES each face up to twenty (20) years imprisonment, a fine of up to $500,000, and up to three (3) years of supervised release. As to each of the charged counts, BARRETT and JAMES, individually, face payment of a $100.00 mandatory special assessment fee.
U.S. Attorney Evans reiterated that the indictment is merely a charge and that the guilt of the defendants must be proven beyond a reasonable doubt.
The case was investigated by the Federal Bureau of Investigation, the Louisiana State Police, the Jefferson Parish Sheriff’s Office, and the New Orleans Police Department. It is being prosecuted by Assistant U.S. Attorney Lynn E. Schiffman of the Narcotics Unit.
Mexican Man Sentenced for Methamphetamine ConspiracyRead the Press Release
Acting United States Attorney Susan Lehr announced that Javier De Leon Marin, 32, of Monterrey, Mexico, was sentenced on November 3, 2023, in federal court in Omaha, Nebraska, for his involvement in a methamphetamine conspiracy. Chief United States District Judge Robert F. Rossiter Jr. sentenced Barajas to 108 months’ imprisonment. There is no parole in the federal system. After his release from prison, he will begin a 2-year term of supervised release. De Leon Marin also agreed to the forfeiture of $169,283 that was seized as part of the investigation.
On April 11, 2022, an undercover (UC) Special Agent with the Drug Enforcement Administration contacted a Mexican-based source of supply about purchasing four ounces of meth that could be delivered to the UC in Omaha. Arrangements were made, and later that day Gerson Ortega-Corado arrived and exchanged $1,000 for four ounces of meth.
On May 18, 2022, the UC again contacted the Mexican-based source of supply and made arrangements for a one-pound delivery of meth. Later that day, the UC met with De Leon Marin and exchanged $3,700 for 418 grams of pure meth. Following the controlled buy, De Leon Marin was followed around to various locations. One of the locations that De Leon Marin visited was an apartment in the area of 10th and Bancroft in Omaha. He was also followed to several storage units.
On June 16, 2022, the DEA executed search warrants at the 10th and Bancroft apartment and the storage units. At the 10th and Bancroft location, 26.3 kilograms of pure meth and $160,000 were seized. At the storage units, agents seized $31,562, $2,303, and $6,980.
Oretga-Corado was sentenced on August 15, 2023, to 168 months’ imprisonment.
This case was investigated by the DEA, FBI, and the Omaha Police Department.
Maryland Tax Preparer Pleads Guilty to Filing False ReturnsRead the Press Release
A Maryland tax return preparer pleaded guilty today to preparing false tax returns.
According to court documents and statements made in court, from at least 2017 through 2022, Adis Smith, of Chula Vista, California, and formerly of Baltimore, prepared and filed false income tax returns for his clients in order to fraudulently lower the taxes they owed or to generate refunds from the IRS to which they were not entitled. Smith typically reported fictitious or inflated business losses and itemized deductions. To conceal his fraud from the IRS, Smith prepared and filed each client’s tax return as a “ghost preparer,” reporting it had been self-prepared by the client rather than by Smith. In total, Smith prepared over 1,000 false tax returns and caused a tax loss to the IRS of approximately $4,729,311.
Smith is scheduled to be sentenced on Feb. 2. He and faces a maximum penalty of three years in prison as well as a period of supervised release, restitution and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Erek L. Barron for the District of Maryland made the announcement.
IRS-Criminal Investigation is investigating the case.
Trial Attorneys Matthew Cofer and Sarah Ranney of the Tax Division and Assistant U.S. Attorney Sean Delaney for the District of Maryland are prosecuting the case.
Mandeville Bookkeeper Charged with Access Device FraudRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced that on November 2, 2023 DEBORAH C. KLOOR, age 59, of Mandeville, was indicted for access device fraud in relation to her embezzlement from a Folsom-based company, where she worked as a bookkeeper. KLOOR is also alleged to have stolen funds from the business’s owner, for whom KLOOR worked as a personal assistant.
According to the indictment, KLOOR is alleged to have used the company’s credit cards as well as the owner’s bank and Amazon accounts without authorization, for her own personal benefit. The indictment alleges that, from approximately January 2015 through December 2019, KLOOR misappropriated $446,324.04 from the company and from the owner without their knowledge or permission.
If convicted, KLOOR could receive up to ten years in prison, up to a $250,000.00 fine or the greater of twice the gross gain or twice the gross loss, and up to three years of supervised release after imprisonment. She would also pay a $100 mandatory special assessment fee.
U.S. Attorney Evans reiterated that an indictment is merely an accusation and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Evans praised the work of the Federal Bureau of Investigation, New Orleans Field Office, in investigating this matter. Assistant U.S. Attorney Matthew R. Payne, Senior Litigation Counsel, is in charge of the prosecution.
Man Involved in Drug Conspiracy that Killed Three in St. Louis Sentenced to 35 Years in PrisonRead the Press Release
ST. LOUIS – U.S. District Judge Sarah E. Pitlyk on Friday sentenced a man to 35 years in prison for his role in drug robberies that cost the lives of three people in St. Louis in 2021.
Demorion Little conspired with his co-defendant, Antaveon Bernard Le'Vell Kent, to steal and sell marijuana. The pair used Facebook to pick their targets and then arranged to buy marijuana from their victims.
On Feb. 25, 2021, Little contacted Rocoby Rodgers via Facebook Messenger and asked about purchasing quarter-pound packages of marijuana. They arranged to meet in the 2300 block of Blair Avenue in St. Louis. Police found Rodgers dead in his car. That night, Little advertised on Facebook that he had marijuana for sale.
Kent and Little arranged to meet Kortlin Williams and Johnnie Jones on March 16, 2021 in the 1100 block of Montgomery Street. When the victims arrived, Kent and Little fired into their vehicle, killing Williams and Jones and injuring a third occupant.
Judge Pitlyk called Little’s conduct, ending the lives of three young men and injuring a fourth, “beyond heinous.”
“This case seems unbelievable – murder for marijuana,” said Assistant Special Agent in Charge Colin Dickey, lead of Drug Enforcement Administration investigations in Eastern Missouri. "Unfortunately, DEA has learned that the type of drug or the quantity doesn’t matter when it comes to drug dealers’ motivations. They will use any means as a way to make money or protect their illegal drug operations, including threatening or using violence.”
Little, 24, pleaded guilty in August to one felony marijuana distribution conspiracy count and one count of aiding and abetting the discharge of one or more firearms in furtherance of the marijuana trafficking conspiracy.
Kent pleaded guilty to conspiracy to distribute marijuana, attempting to possess with the intent to distribute marijuana and two charges of possession and discharge of a firearm in furtherance of a drug trafficking crime that resulted in the fatal shootings of Williams and Jones.
In February, Judge Pitlyk sentenced Kent, 23, of Florissant, to 26 years in prison.
The case was investigated by the Drug Enforcement Administration and the St. Louis Metropolitan Police.
Leader of $70M Cryptocurrency and Binary Options Fraud Schemes Extradited to the U.S.Read the Press Release
A Serbian man has been extradited to the United States, where he faces charges in two separate federal indictments in the Northern District of Texas and Eastern District of New York for his alleged participation in coordinated cryptocurrency and binary options schemes.
On Feb. 3, pursuant to a request for provisional arrest followed by a request for extradition, Georgian authorities arrested Kristijan Krstic, 48, in Batumi, Georgia. The U.S. Marshals Service (USMS) completed the removal of Krstic on Oct. 30 from Georgia to the Northern District of Texas.
Krstic arrived in the Northern District of Texas made his initial appearance today in the U.S. District Court for the Northern District of Texas, where he will first face charges before being transferred to face additional charges in the Eastern District of New York.
“This extradition is the result of continued coordination between the Justice Department and our Georgian law enforcement partners in the fight against transnational organized crime,” said Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division. “We are committed to protecting the people of this nation by investigating and prosecuting individuals involved in cryptocurrency fraud.”
Northern District of Texas
In March 2020, a federal grand jury in the Northern District of Texas indicted Krstic for his role in defrauding investors worldwide out of more than $70 million through fraudulent cryptocurrency and binary options investment platforms. Krstic and more than a dozen other alleged fraudsters were also indicted on charges of conspiracy to commit wire fraud and conspiracy to commit money laundering in the superseding indictment in July 2020.
“The work on this case exemplifies the whole of the Justice Department to bring cyber-criminals – including those who use cryptocurrency and other purported cyber investment platforms to victimize the citizens of the United States – to justice,” said U.S. Attorney Leigha Simonton for the Northern District of Texas. “The U.S. Attorney’s Office for the Northern District of Texas will work hand-in-hand with our law enforcement partners to ensure that cyber-criminals are held accountable regardless of their location.”
According to court documents, the defendants allegedly helped create and market more than 20 fraudulent cryptocurrency and binary options investment platforms, including Start Options, Trinity Mining, Hedger Tech, BTC Mining Factory, Bitcoin Trading World, Dragon Mining, BTC Trader Online, Crypto Trading World, Go Solar Mining, BTC Falcon, Perpetual Energy, Perfect-Options, Options Rider, Option Giants, Banking Options, Aeon Options, Bancde Options, Instant Options, Fast Options, and Elite Options.
“The FBI remains committed to pursuing subjects across international boundaries who are increasingly utilizing sophisticated virtual asset schemes to defraud investors,” said Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division. “Victims were told their investment in Start Options and B2G would return significant wealth, but many were defrauded and harmed as a result. The FBI thanks our national and international partners for their efforts throughout the investigation to help bring justice for the victims.”
“This extradition occurred because of international cooperation and the FBI’s persistence to hold this individual accountable for defrauding thousands of innocent victims. Some victims lost their entire savings to this scheme and have not been able to financially recover,” said Special Agent in Charge Chad Yarbrough of the FBI Dallas Field Office. “We would like to thank our international partners for assisting us with the arrest and extradition of Mr. Krstic. He will now finally face charges for his actions in the United States.”
Krstic is charged in the Northern District of Texas with one count of conspiracy to commit wire fraud and one count of conspiracy to commit money laundering in an alleged scheme to create, promote, market, and organize fraudulent online investment platforms. If convicted, he faces a maximum penalty of 20 years in prison for each count.
The FBI Dallas Field Office is investigating the case.
Assistant U.S. Attorneys Michelle Winters and Nicole Dana for the Northern District of Texas are prosecuting the case. Assistant U.S. Attorneys Dimitri Rocha and John de la Garza for the Northern District of Texas assisted with forfeiture matters.
Eastern District of New York
In February 2021, a federal grand jury in the Eastern District of New York also indicted Krstic for his role in a cryptocurrency scheme in which he solicited U.S. investors using two fraudulent online investment platforms. According to court documents, Krstic was the founder of two digital-asset investment platforms, Start Options and B2G, and also served as the chief financial officer of Start Options. As alleged, between approximately 2017 and 2018, Krstic and others fraudulently induced U.S.-based investors to purchase securities in the form of investment contracts in Start Options and B2G. To perpetuate the fraud, Krstic allegedly used the alias “Felix Logan” and created the Twitter handle “@felixlogan_cfo” to communicate with investors in Start Options and B2G.
The indictment alleges that Start Options purported to be an online investment platform that provided cryptocurrency mining and digital-asset trading services, including trading in cryptocurrencies, commodities, stocks, and indices. Start Options also allegedly claimed that it was “the largest Bitcoin exchange in euro volume and liquidity” and that it was “consistently rated the best and most secure Bitcoin exchange by independent news media.” The indictment further alleges that B2G purported to be an “ecosystem” that would allow users to trade B2G tokens, as well as digital and fiat currencies, “on a secure, comprehensive platform.” Krstic and others allegedly represented that once investors opened a B2G account, a deposit of B2G “open[ed] a door to all the curtains inside Aladdin’s cave. Dollars buy B2G; B2G tokens can be exchanged back into dollars, or for Euros, or for other national fiat currencies. B2G holdings can be traded for original bitcoin or other altcoins.”
“Kristijan Krstic used the hype and mystery of cryptocurrency to separate unwitting investors from their money,” said Special Agent in Charge Tyler Hatcher of the IRS Criminal Investigation (IRS-CI) Los Angeles Field Office. “Krstic founded two online investment platforms which allowed him to steal $7 million in investor funds before closing up shop. Fleeing the country did not stop IRS-CI and our law enforcement partners from continuing our pursuit of justice, and today’s extraction demonstrates that no criminal is out of our reach.”
According to the indictment, however, the money that investors in Start Options and B2G sent was never invested and instead, was laundered internationally to a Philippines-based financial account and digital-currency wallet and diverted to John DeMarr, a U.S.-based promoter of the fraud. Subsequently, DeMarr allegedly transferred to Krstic approximately $7 million in investor funds from B2G and Start Options, and then Krstic stopped responding to all communications and absconded with those investors’ funds. A press release issued by Start Options claimed that the company had been sold to Russian venture capitalists.
Krstic is charged in the Eastern District of New York with one count of conspiracy to commit securities fraud, one count of securities fraud, one count of conspiracy to commit wire fraud, and one count of conspiracy to commit money laundering. If convicted, he faces a maximum penalty of 20 years in prison.
On Jan. 31, DeMarr, 55, of Santa Ana, California, the former Director of North American Operations for Start Options and B2G, was sentenced to five years in prison for his role in the scheme.
U.S. Attorney Breon Peace for the Eastern District of New York joined in the announcement.
IRS-CI and the FBI Los Angeles Field Office are investigating the case.
The government of Georgia, including the Prosecution Service of Georgia, Ministry of Justice of Georgia, and the Ministry of Interior of Georgia, provided significant assistance in the extradition of Krstic to the United States. Republika Srpska Police (RS-MUP) assisted as well. The Justice Department’s Office of International Affairs also provided substantial assistance in securing the arrest and extradition of Krstic. USMS transported Krstic from Georgia to the United States.
Trial Attorney Tian Huang of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys Kaitlin Farrell, Hiral Mehta, and David Pitluck for Eastern District of New York are prosecuting the case, with assistance on forfeiture matters from Assistant U.S. Attorney Laura Mantell for the Eastern District of New York.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Las Vegas Real Estate Developer Sentenced to One Year and a Day in Prison for Tax EvasionRead the Press Release
A Nevada man was sentenced today to one year and one day in prison for evading payment of his federal income taxes.
Scott H. Lawrence, of Las Vegas, pleaded guilty to tax evasion on July 26, 2022.
According to court documents and statements made in court, from approximately 2009 through 2019, Lawrence owned and operated Turn Two Inc. (Turn Two), a Nevada real estate company. In March 2010, the IRS levied Lawrence’s personal bank account in an attempt to satisfy an outstanding tax debt. After learning of the IRS levy, Lawrence began taking steps to thwart IRS collection efforts by, among other things, cashing large portions of his wife’s paycheck to keep the funds out of a bank account the IRS could levy. Beginning in 2011, Lawrence began depositing his wife’s entire paycheck and other earnings into a corporate bank account not subject to levy, held by Turn Two and used that account to pay most of his family’s personal living expenses.
Lawrence then directed his wife to create a new interior design business, D Lawrence Hospitality LLC (DLH), and to open a business bank account for DLH. Lawrence funneled much of his and his wife’s personal income through DLH to impede the IRS’s ability to collect the couple’s unpaid taxes. For years, Lawrence concealed the existence and personal use of DLH’s bank account from the IRS.
Lawrence also caused his attorney to send a materially misleading letter to the IRS and to pay his taxes using an intentionally overdrawn bank account.
In all, as a result of his evasive conduct, Lawrence prevented the IRS from collecting more than $1.9 million in federal income taxes.
In addition to the term of imprisonment, U.S. District Judge Anne R. Traum for the District of Nevada ordered Lawrence to serve two years of supervised release and to pay approximately $1,905,325 in restitution to the United States.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Jason M. Frierson for the District of Nevada made the announcement.
IRS-Criminal Investigation investigated the case.
Trial Attorneys Patrick Burns and Boris Bourget of the Tax Division prosecuted the case.
Las Vegas Real Estate Developer Sentenced to Prison for Tax EvasionRead the Press Release
LAS VEGAS – A Nevada man was sentenced today to 12 months and one day in prison for evading payment of his federal income taxes. Scott H. Lawrence, of Las Vegas, pleaded guilty to tax evasion on July 26, 2022.
According to court documents and statements made in court, from approximately 2009 through 2019, Lawrence owned and operated Turn Two Inc., a Nevada real estate company. In March 2010, the IRS levied Lawrence’s personal bank account in an attempt to satisfy an outstanding tax debt. After learning of the IRS levy, Lawrence began taking steps to thwart IRS collection efforts by, among other things, cashing large portions of his wife’s paycheck to keep the funds out of a bank account the IRS could levy. Beginning in 2011, Lawrence began depositing his wife’s entire paycheck and other earnings into a corporate bank account not subject to levy, held by Turn Two and used that account to pay most of his family’s personal living expenses.
Lawrence then directed his wife to create a new interior design business, D Lawrence Hospitality LLC (“DLH”), and to open a business bank account for DLH. Lawrence funneled much of his and his wife’s personal income through DLH to impede the IRS’s ability to collect the couple’s unpaid taxes. For years, Lawrence concealed the existence and personal use of DLH’s bank account from the IRS.
Lawrence also caused his attorney to send a materially misleading letter to the IRS and to pay his taxes using an intentionally overdrawn bank account.
In all, as a result of his evasive conduct, Lawrence prevented the IRS from collecting more than $1.9 million in federal income taxes.
In addition to the term of imprisonment, U.S. District Judge Anne R. Traum ordered Lawrence to serve two years of supervised release and to pay approximately $1,905,325 in restitution to the United States.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Jason M. Frierson for the District of Nevada made the announcement.
IRS-Criminal Investigation investigated the case.
Trial Attorneys Patrick Burns and Boris Bourget of the Tax Division prosecuted the case.
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Kingston Resident Sentenced for Failure to Register as A Sex OffenderRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Darrell Edward Lynch, Jr., age 53, of Kingston, Oklahoma, was sentenced to 30 months in prison for failing to register as a sex offender.
The charges arose from investigations by the United States Marshals Service and the Marshall County Sheriff’s Office.
On November 7, 2022, Lynch pleaded guilty to one count of failing to register as a sex offender. According to U.S. Marshals, between April 18 and May 3, 2022, Lynch, a convicted sex offender, changed his residence within the Eastern District of Oklahoma and knowingly failed to update his registration in violation of the law. Lynch, who received a felony conviction in 1998 for Aggravated Sexual Assault of a Child in the State of Texas, is required to register or update his registration as a sex offender every ninety days.
The Honorable Rodney W. Sippel, Senior U.S. District Judge in the United States District Court for the Eastern District of Missouri, sitting by assignment, presided over the hearings in Muskogee, Oklahoma. Lynch will remain in custody of the U.S. Marshal pending transportation to a designated United States Bureau of Prisons facility to serve a non-paroleable sentence of incarceration.
Special Assistant United States Attorney Genevieve Ozark represented the United States.
Justice Department Announces New Nationwide Public Safety CommitmentsRead the Press Release
New Haven – On November 2, the Justice Department announced several new commitments as part of its Comprehensive Strategy for Reducing Violent Crime. Instituted by Attorney General Merrick B. Garland in May 2021, the strategy focuses on harnessing federal resources, intelligence, and expertise as a force-multiplier with state, local, and Tribal law enforcement.
Deputy Attorney General Lisa O. Monaco and Associate Attorney General Vanita Gupta highlighted the more than $334 million in critical grant funding to law enforcement agencies and stakeholders awarded today by the Office of Community Oriented Policing Services (COPS Office).The COPS grants announced today include funding to help law enforcement agencies hire over 1,730 new law enforcement officers across the country while also providing critical funding to support school safety and continue to advance community policing nationwide.
“Law enforcement officers across the country are showing up every day to protect their communities in the face of unprecedented challenges,” said Attorney General Merrick B. Garland. “These grants, which support the hiring of more than 1700 new officers and make critical investments in school safety and crisis intervention efforts, will help provide local law enforcement agencies with the resources they need to keep their communities safe, support officers, and build public trust.”
Through this funding, U.S. Attorney’s Office for the District of Connecticut is pleased to announce that the Justice Department’s COPS Office has awarded more than $8.8 million to Connecticut and several of its municipalities to combat violent crime and maintain public safety. Included in the grant awards are:
- COPS Hiring Program (CHP) Awards of $3,161,790 to the Hartford Police Department to hire 10 police officers, and $500,000 to the North Branford Police Department to hire four police officers;
- An Anti-Heroin Task Force (AHTF) Program Award of $3,882,182 to Connecticut’s Department of Emergency Services and Public Protection;
- A COPS Office School Violence Prevention Program (SVPP) Award of $500,000 to the New Hartford school system;
- And Community Policing Development (CPD) Program Awards of $153,806 to Colchester, $160,000 to Deep River, $190,000 to Fairfield, $126,660 to Norwalk, $28,615 to Vernon, and $174,342 to the Connecticut State Police.
“We are pleased that communities across Connecticut will benefit from these substantial Justice Department grant awards,” said U.S. Attorney Vanessa Roberts Avery. “These funds will help fight violent crime, curb the illegal distribution of dangerous narcotics, improve policing, and keep our children safe.”
The Department has also named the five new cities to join the more than 50 jurisdictions currently part of the Office of Justice Program’s (OJP) Bureau of Justice Assistance (BJA) National Public Safety Partnership (PSP), which has a proven track record of helping partner sites reduce crime, improve homicide clearance rates, and enhance the quality of life for community members. The 2024 PSP sites are: Knoxville, Tennessee; Minneapolis, Minnesota; Raleigh, North Carolina; San Antonio, Texas; and Vallejo, California.
Lastly, the Deputy Attorney General and Associate Attorney General announced that this December 11-13, in Indianapolis, the Justice Department’s will bring together 1,500 local and federal partners from across the country, including representatives from the more than 50 PSP jurisdictions and from Project Safe Neighborhoods for a Violent Crime Reduction Summit, to be hosted by OJP BJA.
Complete lists of all program award recipients, including funding amounts, can be found here.